If the quantity of goods held in inventory decreased during the period, the dollar amount of ending inventory cannot exceed the dollar amount of beginning inventory.

Question

Quizplus · Accepted Answer

If the quantity of goods held in inventory decreased during the period, it is possible for the dollar amount of ending inventory to exceed the dollar amount of beginning inventory if the unit cost of the goods increased during the period.

If the Quantity of Goods Held in Inventory Decreased During