Beginning inventory plus inventory purchases equals cost of goods sold.

Name: Beginning inventory plus inventory purchases equals cost of goods sold.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Beginning inventory plus inventory purchases equals total inventory available for sale. Cost of goods sold is calculated by subtracting ending inventory from total inventory available for sale. Therefore, the correct formula is:
Beginning inventory + Inventory purchases - Ending inventory = Cost of goods sold.

Beginning Inventory Plus Inventory Purchases Equals Cost of Goods Sold