Thursday 1 December 2022

In a periodic inventory system which uses the LIFO inventory cost flow method, the cost of goods sold is the total cost of goods available for sale

 In a periodic inventory system which uses the LIFO inventory cost flow method, the cost of goods sold is the total cost of goods available for sale
Plus the ending inventory.
Minus the ending inventory.
Plus the beginning inventory.
Minus the beginning inventory.

Answer

Minus the ending inventory.


 You Answered Correctly!
This answer is correct. Cost of goods available for sale is the amount of inventory a company could have sold within a given period of time. Ending inventory is the inventory that is still owned by the company at the end of the period. Under a periodic inventory system, regardless of the cost flow assumption, ending inventory should be subtracted from cost of goods available for sale to determine cost of goods sold.

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