Question

Regardless of the inventory costing system used, cost of goods available for sale must be allocated at the end of the period between beginning inventory and net purchases during the period. ending inventory and beginning inventory. net purchases during the period and ending inventory. ending inventory and cost of goods sold. beginning inventory and cost of goods sold.

Answer 1

Answer:

The correct answer is ending inventory and cost of goods sold

Explanation:

Cost of goods available for sale is defined as the maximum amount of the inventory or the goods which the company could possibly sell during the fiscal or accounting period.

The cost of goods which are available for sale need to be allocated among the cost of goods sold and the ending inventory at the end of the year, where the cost of goods equals to the cost of goods available for sale subtract the ending inventory.