Cost of goods available for sale consists of which two elements?

Question

Quizplus · Accepted Answer

Cost of goods available for sale is the sum of the cost of beginning inventory and the cost of goods purchased during the year. Thus, the correct two elements are the cost of beginning inventory and the cost of goods purchased during the year. Option A is incorrect because it ignores the cost of goods purchased during the year. Option B is incorrect because it includes the cost of ending inventory which is not part of the cost of goods available for sale. Option D is incorrect because it refers to the difference between the costs of goods purchased and the cost of goods sold, which is not the same as the cost of goods available for sale.

Cost of Goods Available for Sale Consists of Which Two