During its first year of operations, a company that incurred $1,000 in production costs reported cost of goods sold of $800 and selling costs of $100. Its ending finished goods inventory was $300. a. Trueb. False

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Business

Boo Boo

1 November, 00:21

During its first year of operations, a company that incurred $1,000 in production costs reported cost of goods sold of $800 and selling costs of $100. Its ending finished goods inventory was $300. a. Trueb. False

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Parker Cantu · Answer 1

b. False

Explanation:

Given information

Incurred cost for production = $1,000

Cost of goods sold = $800

Selling cost = $100

Ending finished goods inventory = $300

Since the cost of goods sold and the selling cost are reported in the income statement but these are not equal plus the inventory is an asset which is to be reported on the asset side of the balance sheet.

So, the given statement is false