Question

1. What is the correct order of the flow of product costs through the inventory system?

A. Work in Process, Finished Goods, Materials Inventory, Cost of Goods Sold
B. Cost of Goods Sold, Work in Process, Materials Inventory, Finished Goods
C. Materials Inventory, Work in Process, Cost of Goods Sold, Finished Goods

D. Materials Inventory, Work in Process, Finished Goods, Cost of Goods Sold

2. Cost of Goods Sold can be calculated in the following manner:

A. Beginning Work in Process + Cost of Goods Manufactured – Ending Work in Process

B. Ending Materials Inventory + Ending Work in Process + Ending Finished Goods
C. Ending Finished Goods – Beginning Finished Goods – Manufacturing Overhead

D. Beginning Finished Goods + Cost of Goods Manufactured – Ending Finished Goods

Answer 1