Cost of goods available for sale is computed by adding
A) beginning inventory to net purchases.
B) beginning inventory to the cost of goods purchased.
C) net purchases and freight-in.
D) purchases to beginning inventory.

Question

Quizplus · Accepted Answer

Cost of goods available for sale is computed by adding beginning inventory to the cost of goods purchased. This includes all costs to get the goods ready for sale, not just the purchase price.

Cost of Goods Available for Sale Is Computed by Adding