The cost of goods sold would appear on the income statement while the cost of the ending inventory would appear on the balance sheet.

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) is reported on the income statement as it reflects the direct costs attributable to the production of the goods sold by a company. The cost of the ending inventory is reported on the balance sheet under current assets, as it represents the value of goods that have not been sold by the end of the accounting period.

The Cost of Goods Sold Would Appear on the Income