Goods available for sale are allocated to both ending inventory and cost of goods sold.

Question

Quizplus · Accepted Answer

This is correct. When calculating cost of goods sold (COGS) and ending inventory, the goods available for sale are allocated between the two. The amount allocated to COGS represents the cost of the goods sold during the period, while the amount allocated to ending inventory represents the cost of the goods that are still on hand at the end of the period.

Goods Available for Sale Are Allocated to Both Ending Inventory