Readers Unlimited sells books.The following information summarizes the company's operating expenses for the year: $$\begin{array} { | l | c c | }
\hline \text { Purchases } & \$ & 90,000 \
\hline \text { Operating expenses } & \mathbf { \$ } & 53,000 \
\hline \text { Bepinning merchandise inventary } & \mathbf { 1 } & 12,000 \
\hline \text { Ending merchandise inventory } & \mathbf { \$ } & 15,000 \
\hline \text { Sales revenue } & \mathbf { \$ } & 172,000 \
\hline
\end{array}$$
- What is cost of goods available for sale?
A)$105,000
B)$ 82,000
C)$ 87,000
D)$102,000

Question

Readers Unlimited sells books.The following information summarizes the company's operating expenses for the year: $$\begin{array} { | l | c c | } 
\hline \text { Purchases } & \$ & 90,000 \
\hline \text { Operating expenses } & \mathbf { \$ } & 53,000 \
\hline \text { Bepinning merchandise inventary } & \mathbf { 1 } & 12,000 \
\hline \text { Ending merchandise inventory } & \mathbf { \$ } & 15,000 \
\hline \text { Sales revenue } & \mathbf { \$ } & 172,000 \
\hline
\end{array}$$
- What is cost of goods available for sale?
A)$105,000
B)$ 82,000
C)$ 87,000
D)$102,000

Quizplus · Accepted Answer

Cost of goods available for sale can be calculated as follows:

Beginning inventory + Purchases = Cost of goods available for sale

In this scenario, the beginning inventory is given as $17,000 and the total purchases for the year is $85,000.

So,

Cost of goods available for sale = $17,000 + $85,000 = $102,000

Therefore, the correct answer is D.

Readers Unlimited Sells Books - What Is Cost of Goods Available for Sale? A)$105,000

Readers Unlimited Sells Books - What Is Cost of Goods Available for Sale?
A)$105,000