Cost of goods available for sale is equal to beginning inventory plus net purchases minus ending inventory.

Name: Cost of goods available for sale is equal to beginning inventory plus net purchases minus ending inventory.
Brand: Quizplus
Rating: 4.9 (55 reviews)

Question

Quizplus · Accepted Answer

Cost of goods available for sale is equal to beginning inventory plus net purchases, not minus ending inventory. Ending inventory is subtracted when calculating the cost of goods sold, not the cost of goods available for sale.

Cost of Goods Available for Sale Is Equal to Beginning