A company sells goods for $150,000 that cost $54,000 to manufacture. Which of the following statements is true?

Name: A company sells goods for $150,000 that cost $54,000 to manufacture. Which of the following statements is true?
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS), which in this case is $54,000, will be removed from the finished goods inventory, leading to a decrease in the finished goods account on the balance sheet. Sales and gross profit are recognized on the income statement, not the balance sheet.

A Company Sells Goods for $150,000 That Cost $54,000 to Manufacture