The cost of goods manufactured is added to the beginning balance of Finished Goods Inventory to obtain the total cost of goods available for sale during the period.

Question

Quizplus · Accepted Answer

This is correct. The cost of goods manufactured represents the total cost of producing the goods that are ready for sale. When added to the beginning balance of Finished Goods Inventory, it gives the total cost of goods available for sale during the period.

The Cost of Goods Manufactured Is Added to the Beginning