Which of the following is true regarding flow of costs for a manufacturer?

1. Inventory flow is Raw Materials to Work In Process to Finished Goods, then is considered Cost of Goods Sold when the sale of the inventory is made.
2. Inventory flow is Raw Materials to Finished Goods to Work in Process, then is considered Cost of Goods Sold when the sale of the inventory is made.
3. Inventory flow is Finished Goods to Work In Process to Raw Materials, then is considered Cost of Goods Sold when the sale of the inventory is made.
4. Inventory purchased no matter what state it is in is placed in the Inventory asset account until it is sold, when it becomes Inventory Sold on the balance sheet.