Use this information to answer the following question.
The selected accounts and balances for Keystone Market appear as follows:
Cost of goods available for sale would appear on the income statement as
A)$124,000.
B)$71,000.
C)$131,000.
D)$61,000.

Question

Use this information to answer the following question. 
The selected accounts and balances for Keystone Market appear as follows:
 Cost of goods available for sale would appear on the income statement as
A)$124,000. 
B)$71,000. 
C)$131,000. 
D)$61,000.

Quizplus · Accepted Answer

Cost of goods available for sale is the sum of beginning inventory plus purchases for the period. In this case, beginning inventory is $61,000 and purchases are $70,000, so the cost of goods available for sale is $131,000.

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