The balance of the Cost of Goods Sold account at the end of the year represents: Select one: A. The cost of inventory sold in the current year. B. The total sales revenue to customers. C. Total purchases of inventory for the year. D. The cost of inventory not sold in the current year.

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Business

Hugo Casey

14 October, 00:38

The balance of the Cost of Goods Sold account at the end of the year represents: Select one: A. The cost of inventory sold in the current year. B. The total sales revenue to customers. C. Total purchases of inventory for the year. D. The cost of inventory not sold in the current year.

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Spencer · Answer 1

A) The cost of inventory sold in the current year.

Explanation:

Cost of Goods Sold: It refers to the cost both associated with the sold product, direct and indirect costs are both included.

At the end of the year COGS is subtracted from the sales in dollars, to identify if the products are in profit or loss.