Cost of goods available for sale is computed by adding

Question

Quizplus · Accepted Answer

The cost of goods available for sale represents the total cost incurred in obtaining the goods that are available for sale during the accounting period. This includes the beginning inventory (the goods on hand at the beginning of the period) plus the cost of goods purchased (the cost of inventory acquired during the period). Therefore, the cost of goods available for sale is computed by adding the beginning inventory to the cost of goods purchased. Option A and C are incorrect because they do not include the cost of beginning inventory. Option D is incorrect because it incorrectly uses the word "purchases" instead of "cost of goods purchased."

Cost of Goods Available for Sale Is Computed by Adding