Ask Experts Questions for FREE Help !
    jusclif's Avatar
    jusclif Posts: 1, Reputation: 1
    New Member

    Aug 22, 2006, 02:50 PM
    Posting Costs Of Goods Sold
    Why is it inappopriate to post goods puchased at the time of purchase instead of the time actually sold??
    adiwsusanto's Avatar
    adiwsusanto Posts: 5, Reputation: 1
    New Member

    Mar 12, 2008, 03:08 AM
    That's not true. That's actually the correct way of doing it. When you purchase your inventory you should Dr. inventory & Cr. Your payable and Dr. COGS and Cr. Inventory when you sold the goods
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member

    Mar 16, 2008, 02:01 PM
    The question is seven months old.

    But for anyone reading this...

    The person titled it "posting to cost of goods sold." Meaning they were asking about why it's incorrect to post to cost of goods sold when it's purchased, not post to the inventory account. And posting to cost of goods sold at the time of purchase is indeed incorrect.

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Fixed costs vs. Variable costs [ 1 Answers ]

Can someone please check my answers. -Classify each of the following items of factory overhead as either a fixed or a variable cost. (Include any costs you consider to be semivariable within the variable category) a. Indirect labor- fixed costs could be variable under certain circumstances b....

Cost of Goods Manufactured [ 5 Answers ]

I am taking my first class in Accounting and I am having difficulties with my homework. I have the following problem, that I have done in several ways and I always get an answer that is greater that the correct one. These are the figures (in thousands of dollars): Direct Labor Cost: $10,500...

Net sales-cost of goods sold= [ 2 Answers ]

What is the net sales minus cost of goods sold?

Damaged Goods [ 18 Answers ]

I purchased a home and after the contract for the sale was executed, the sellerís wife contacted me and asked me if I was interested in purchasing the new custom draperies that were on the windows. She told me that she wanted $1,700. I agreed and told her that I would pay her separately at...

Cost of goods sold for software [ 0 Answers ]

I have developed a small software application to sell to my customers. How do I determine the cost of goods sold per unit if I don't know how many units I might sell. For example: if my development cost was $1000 and I sold two units for $10.00 each, I know I had $20.00 in sales but for accounting...

View more questions Search