Gould Shoe Store has a beginning merchandise inventory of $30,000. During the period, purchases were $140,000; purchase returns, $4,000; and freight-in $10,000. A physical count of inventory at the end of the period revealed that $20,000 was still on hand. The cost of goods available for sale was
A) $164,000.
B) $156,000.
C) $176,000.
D) $184,000.

Question

Quizplus · Accepted Answer

Beginning inventory + purchases - purchase returns + freight-in = cost of goods available for sale
$30,000 + $140,000 - $4,000 + $10,000 = $176,000
Therefore, the cost of goods available for sale is $176,000.

Gould Shoe Store Has a Beginning Merchandise Inventory of $30,000