The ending balance of the Cost of Goods Sold account will differ in traditional and backflush costing.

Name: The ending balance of the Cost of Goods Sold account will differ in traditional and backflush costing.
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Question

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In both traditional and backflush costing, the Cost of Goods Sold account reflects the cost of goods that have been sold, so the ending balance should be the same. The difference lies in the timing and method of recording costs, not the final balance.

The Ending Balance of the Cost of Goods Sold Account