Beginning inventory plus net purchases equals cost of goods sold.

Name: Beginning inventory plus net purchases equals cost of goods sold.
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Question

Quizplus · Accepted Answer

Beginning inventory plus net purchases equals total inventory available for sale. Cost of goods sold can be calculated by subtracting ending inventory from total inventory available for sale. The formula is:

Cost of goods sold = Total inventory available for sale - Ending inventory.

Beginning Inventory Plus Net Purchases Equals Cost of Goods Sold