Question

The correct cost flow in a job order costing system is: a. work in process; finished goods, cost of goods sold b. cost of goods sold, work in process, finished goods c. finished goods, work in process; cost of goods sold d. cost of goods sold, finished goods, work in process

Answer 1

Answer:

A. Work in process; finished goods, cost of goods sold.

Explanation:

Job order costing system is a system for assigning and accumulating manufacturing cost of individual output units. It is used to allocate costs based on specific order. The correct cost flow in job order costing system is:

Manufacturing cost ➞ Work in process Cost ➞ Cost of finished goods ➞ Cost of goods sold.