Regardless of the inventory costing system used,cost of goods available for sale must be allocated at the end of the period between
A)beginning inventory and net purchases during the period.
B)ending inventory and beginning inventory.
C)net purchases during the period and ending inventory.
D)ending inventory and cost of goods sold.
E)beginning inventory and cost of goods sold.

Question

Quizplus · Accepted Answer

The cost of goods available for sale must be allocated between ending inventory and cost of goods sold. This calculation is essential for determining the value of inventory on the balance sheet and the cost of goods sold on the income statement. The ending inventory is the value of inventory that remains unsold at the end of the accounting period, while the cost of goods sold is the cost of inventory that has been sold during the period. Allocating the cost of goods available for sale between ending inventory and cost of goods sold allows for accurate financial reporting and helps businesses make informed decisions about their inventory management.

Regardless of the Inventory Costing System Used,cost of Goods Available