Asked by Anamari Kolak on May 05, 2024
Verified
In a manufacturing company, goods available for sale equals the sum of the cost of goods
manufactured and the beginning finished goods inventory.
Cost of Goods Manufactured
The total cost incurred to manufacture products, including materials, labor, and overhead, during a specific period.
Finished Goods Inventory
Refers to products that have completed the manufacturing process but have not yet been sold.
- Determine the function of inventory within the calculation of the cost of goods sold and its effect on net income.
Verified Answer
HM
Haile McDonaldMay 11, 2024
Final Answer :
True
Explanation :
Goods available for sale in a manufacturing company is calculated by adding the cost of goods manufactured during the period to the beginning finished goods inventory. This provides the total value of goods that were available for sale during the period.
Learning Objectives
- Determine the function of inventory within the calculation of the cost of goods sold and its effect on net income.