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Cost of goods sold (COGS) is the carrying value of goods sold during a particular period. Costs are associated with particular goods using one of the several formulas, including specific identification, first-in first-out (FIFO), or average cost. Costs include all costs of purchase, costs of conversion and other costs that are incurred in ...
If the inventory has decreased in value below historical cost, then its carrying value is reduced and reported on the balance sheet. The criterion for reporting this is the current market value . Any loss resulting from the decline in the value of inventory is charged to " cost of goods sold " (COGS) if non-material, or "loss on the reduction ...
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Assign total costs to units completed and to units in ending work in process inventory. The journal entries for process costing are the same as those for job-order costing with one exception. The entry to transfer cost from one work-in-process account to another is: Work-in-process inventory-second department Debit (Left)