XACC290WEEK7 - XACC/290 WEEK 7 DQS Cost of Goods Sold How...

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XACC/290 WEEK 7 DQ’S Cost of Goods Sold How would you calculate cost of goods sold? What items make up cost of goods sold? Cost of goods sold is calculated in one of two ways. One way is to adjust the cost of the goods purchased or manufactured by the change in inventory of finished goods. The second way to calculate the cost of goods sold is to use the following costs: beginning inventory + the cost of goods purchased or manufactured = cost of goods available - ending inventory. The cost of goods sold is the cost of the merchandise that a retailer, distributor, or manufacturer has sold. The cost of goods sold is reported on the income statement and can be considered as an expense of the accounting period. By matching the cost of the goods sold with the revenues from the goods sold, the matching principle of accounting is achieved. LIFO What is LIFO as it relates to inventory? Please give an example. Anyone can respond.
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