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Number the following in the order of the flow of manufacturing costs for a company. a. Close under- or overapplied factory overhead to Cost of Goods Sold b. Purchase materials c. Use factory labor and incur factory overhead in production d. Transfer completed jobs to finished goods e. Apply factory overhead to jobs according to the predetermined overhead rate f. Requisition materials to jobs g. Upon sale, move cost of finished product to Cost of Goods Sold

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Answer: The correct order of the flow of manufacturing cost for a company is:

  1. b. Purchase materials.
  2. f. Requisition materials to jobs.
  3. c. Use factory labor and incur factory overhead in production.
  4. e. Apply factory overhead to jobs according to the predetermined overhead rate.
  5. d. Transfer completed jobs to finished goods.
  6. a. Close under- or overapplied factory overhead to Cost of Goods Sold.
  7. g. Upon sale, move cost of finished product to Cost of Goods Sold.

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