Adding together the ending merchandise inventory and cost of goods sold gives the cost of goods available for sale.

Question

Quizplus · Accepted Answer

This statement is true according to the formula for calculating cost of goods sold: Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold. Rearranging this formula, we get: Beginning Inventory + Purchases = Cost of Goods Available for Sale. Therefore, adding together the ending merchandise inventory and cost of goods sold would give us the cost of goods available for sale.

Adding Together the Ending Merchandise Inventory and Cost of Goods