Which of the Following Is the Correct Flow of Manufacturing

question 16

Multiple Choice

Which of the following is the correct flow of manufacturing costs?

• A) raw materials, work in process, finished goods, cost of goods sold
• B) raw materials, finished goods, cost of goods sold, work in process
• C) work in process, finished goods, raw materials, cost of goods sold
• D) cost of goods sold, raw materials, work in process, finished goods

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Definitions:

Accounts Receivable

Funds that are yet to be paid by customers for the products or services they have received from a business.

Credit Sales

Credit Sales are sales made on credit, where the payment is received after the sale has been made, effectively extending a line of credit to the customer.

Note Receivable

A written promise for amounts to be received by a debtor, typically including interest, representing a credit instrument to the holder.

Specified Amount

A certain, defined quantity or sum mentioned in a financial document or agreement.