Question

"The value of ending inventory should be equal to beginning inventory plus total production costs minus cost of goods sold.

A True
B False"

Answer 1

The value of ending inventory should be equal to beginning inventory plus total production costs minus cost of goods sold is False.

Step-by-step explanation:

The statement that the value of ending inventory should be equal to beginning inventory plus total production costs minus cost of goods sold is False. In accounting, the value of ending inventory is determined by taking the beginning inventory, adding the cost of purchases and production costs, and then subtracting the cost of goods sold. This is known as the equation for calculating the cost of goods available for sale. The ending inventory value is crucial for calculating the cost of goods sold and determining the net income of a business.