Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 16 - Process Costing - Self-Test Questions - Page 874: 3

Answer

D

Work Step by Step

In a process cost system, costs flow from work in process to finished goods to cost of goods sold. Work in process is first because goods are in process as they are produced and before they are finished. Cost of goods sold comes last because goods are not sold until they are finished.
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