Which of the following describes the flow of product costs in a manufacturing company?

Multiple Choice

$$ Product costs are first accumulated in an asset account $($Inventory$)$ and then transferred to an expense account $($Cost of Goods Sold$)$ when the products are sold.

$$ Product costs are first accumulated in an expense account $($Cost of Goods Sold$)$ and then transferred to an asset account $($Inventory$)$ When the goods are sold.

$$ Product costs are recorded in an expense account $($Cost of Goods Sold$)$ as the goods are being manufactured.

$$ Product costs are never expensed.