Companies must allocate the cost of all the goods available for sale (or use) between

Question

Quizplus · Accepted Answer

Companies must allocate the cost of all goods available for sale between the cost of goods sold (reported on the income statement) and the ending inventory (reported on the statement of financial position). This allocation is necessary to accurately report both the cost of goods sold during the period and the value of inventory remaining at the end of the period.

Companies Must Allocate the Cost of All the Goods Available