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.

Question

Quizplus · Accepted Answer

This statement is true. The cost of goods manufactured represents the total cost of the products that have been completed during a specific period, and it is used to calculate the cost of goods available for sale. This cost includes both the beginning balance of finished goods inventory and the cost of goods manufactured, which is added to the inventory to obtain the total cost of goods available for sale.

The Cost of Goods Manufactured Is Added to the Beginning