Cost of goods sold plus ending inventory equals:
A)net purchases.
B)cost of goods available for sale.
C)gross margin.
D)gross profit.

Question

Quizplus · Accepted Answer

Cost of goods sold plus ending inventory equals the cost of goods available for sale. This is because the cost of goods available for sale is the total amount of goods a company has to sell during a period, which includes both the goods it started with (beginning inventory) and the goods it purchased or manufactured (net purchases), minus the goods it has at the end of the period (ending inventory). Adding the cost of goods sold to the ending inventory gives the total value of goods that were available to be sold.

Cost of Goods Sold Plus Ending Inventory Equals