Following are the account balances from Browne Company's income statement:

Given this information,the cost of merchandise available for sale during 2014 is

Question

Following are the account balances from Browne Company's income statement:

Given this information,the cost of merchandise available for sale during 2014 is

Quizplus · Accepted Answer

The cost of merchandise available for sale is the sum of beginning inventory and purchases during the year. Beginning inventory is not specified, but we know that purchases were $64,000 and ending inventory is $5,000. Using the formula for cost of goods sold (beginning inventory + purchases - ending inventory), we can solve for beginning inventory: $47,000 + $64,000 - $5,000 = $106,000. Therefore, the cost of merchandise available for sale during 2014 is $106,000.

Following Are the Account Balances from Browne Company's Income Statement