Challenge Tennis & Recreation's operating activities for the year are listed below. What is the cost of goods available for sale?
A)$164,000
B)$201,800
C)$95,600
D)$174,800

Question

Challenge Tennis & Recreation's operating activities for the year are listed below.  What is the cost of goods available for sale?
A)$164,000 
B)$201,800 
C)$95,600 
D)$174,800

Quizplus · Accepted Answer

The cost of goods available for sale is calculated by adding the beginning inventory to the cost of purchases:
$120,000 (beginning inventory) + $81,800 (cost of purchases) = $201,800. Therefore, the answer is choice B.

Challenge Tennis & Recreation's Operating Activities for the Year Are