The cost of goods sold is

Question

Quizplus · Accepted Answer

The cost of goods sold is the cost of the inventory that was sold during the period. This can be calculated by taking the cost of goods available for sale (beginning inventory plus purchases) and subtracting the cost of ending inventory, as this is the amount of inventory that was not sold and remains on hand. Option A is incorrect because it includes beginning inventory, which is already accounted for in the calculation of goods available for sale. Option B is incorrect because the cost of goods sold is reported on the income statement, not the balance sheet. Option D is incorrect because the amount of inventory on hand at the end of the period is not the same as the cost of goods sold.

The Cost of Goods Sold Is