Asked by Nurul Izzati on Jun 11, 2024
Verified
The cost of goods available for sale is allocated to the cost of goods sold and the
A) beginning inventory.
B) ending inventory.
C) cost of goods purchased.
D) gross profit.
Cost of Goods Sold
Direct costs attributable to the production of goods sold by a company, including material, labor, and manufacturing overhead expenses.
Ending Inventory
Merchandise value ready for sale at the close of an accounting cycle.
- Acquire an understanding of the concept of cost of goods available for sale and how it is allocated.
Verified Answer
JR
Jordan RickerdJun 17, 2024
Final Answer :
B
Explanation :
The cost of goods available for sale is allocated between the cost of goods sold and the ending inventory. The beginning inventory and purchases during the period make up the cost of goods available for sale, which is then divided between what was sold and what remains at the end of the period as ending inventory.
Learning Objectives
- Acquire an understanding of the concept of cost of goods available for sale and how it is allocated.