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When it is sold.

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Q: When does inventory become Cost Of Goods Sold?
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Cost of good sold?

Cost of goods sold refer to the carrying value of goods sold during a particular period. The beginning inventory + inventory purchases â?? end inventory equals cost of goods sold.


What is the cost of goods sold under a periodic system if beginning inventory is 500 cost of goods purchases is 200 and ending inventory is 100?

Cost of goods sold = Beginning inventory + purchases - closing balance Cost of goods sold = 500 + 200 -100 Cost of goods sold = 600 units


Formula for cost of goods sold?

Beginning Inventory + Purchases - Cost of Good Sold = Ending Inventory


How do you find and interpret the the accounting ratio for number of days' in sales inventory?

Number of days' sales in inventory = Inventory / Ave days' cost of goods sold Average days' cost of goods sold = Annual cost of goods sold / 365


What account is used to record the cost of inventory sold?

Cost of goods sold ( ? )


Beginning inventory plus the cost of goods purchased equals?

Cost of goods sold.


Calculation of inventory turnover rate?

cost of goods sold/ Average inventory


What is the inventory turnover ratio?

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory and Average Inventory = ( Beginning Inventory + Ending Inventory ) / 2


The inventory turnover is calculated by dividing cost of goods sold by?

ending inventory


The inventory turnover ratio is calculated by dividing cost of goods sold by?

ending inventory


When the cost of inventory is rising which inventory cost flow method will produce the lowest amount of cost of goods sold?

LIFO


What is the difference between cost of sale and cost of goods available for sale?

Cost of Goods Available for Sale represents the physical cost of inventory on your books that is waiting to be sold, while Cost of Goods Sold represents the income statement expense for inventory once it is old. Due to the Matching Principle in Financial accounting, the cost of the inventory does not get expensed on the income statement until the goods are actually sold.