The cost of goods available for sale consists of the beginning inventory plus the cost of goods purchased.

Question

Quizplus · Accepted Answer

This is true according to the formula for calculating cost of goods sold (COGS), which is beginning inventory + cost of goods purchased - ending inventory. The cost of goods available for sale is the sum of beginning inventory and cost of goods purchased, which is used in the calculation of COGS.

The Cost of Goods Available for Sale Consists of the Beginning