Thursday, August 18, 2011

In the general ledger, is there a difference between inventory at cost and cost of goods sold?

'Inventory at cost' is the value of the inventory you have based on its historical value (not present value). 'Cost of goods sold' is based on historical value of what you sold. So basically, cost of goods sold is what you sold..obviously..and inventory at cost is what you have yet to sell.

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