Asked by Dashiel Gayle Carreon on Jul 13, 2024
Verified
Inventory becomes part of the cost of goods sold when a company
A) pays for the inventory.
B) purchases the inventory.
C) sells the inventory.
D) receives payment from the customer.
Cost Of Goods Sold
An expense representing the total cost of materials and labor required to produce goods that have been sold in a given period.
Inventory
Assets in the form of materials, work-in-progress, or finished goods held by a company to be sold in the ordinary course of business.
- Recognize the effect of inventory transactions on the cost of goods sold.
Verified Answer
BS
bradley suarezJul 19, 2024
Final Answer :
C
Explanation :
Inventory becomes part of the cost of goods sold when a company sells the inventory. This is because the cost of goods sold (COGS) represents the direct costs attributable to the production of the goods sold by a company.
Learning Objectives
- Recognize the effect of inventory transactions on the cost of goods sold.