When it is 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.
Cost of goods sold = Beginning inventory + purchases - closing balance Cost of goods sold = 500 + 200 -100 Cost of goods sold = 600 units
Beginning Inventory + Purchases - Cost of Good Sold = Ending 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
Cost of goods sold ( ? )
Cost of goods sold.
cost of goods sold/ Average inventory
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory and Average Inventory = ( Beginning Inventory + Ending Inventory ) / 2
ending inventory
ending inventory
LIFO
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.