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    eddie11's Avatar
    eddie11 Posts: 3, Reputation: 1
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    #1

    May 11, 2007, 12:12 PM
    Inventory cost/cost of good sold
    Is inventory cost the same as Cost of good sold? I believe it is but would be grateful for comfirmation.
    bunnyKutty's Avatar
    bunnyKutty Posts: 60, Reputation: 5
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    #2

    May 12, 2007, 02:35 AM
    No. Inventory cost is the cost of raw material consumed during a period. Inventory cost = Beginning raw material + purchases of raw material - ending raw material. Cost of goods sold = Beginning Raw material +Purchases of raw material + direct cost incurred - ending raw material.
    The difference between the two is direct cost incurred or conversion cost incurred.
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