The beginning inventory plus cost of goods sold equals the cost of goods available for sale during the period.

Question

Quizplus · Accepted Answer

Beginning inventory + Purchases- Purchase returns and allowances - Purchase discounts + Transportation-in = Cost of goods available for sale
Cost of goods available for sale- Ending inventory = Cost of goods sold
Thus:
Cost of goods available for sale = Ending merchandise inventory + cost of goods sold

The Beginning Inventory Plus Cost of Goods Sold Equals the Cost