Woods Company had an inventory balance of $2,600 on January 1. During the accounting period they made purchases of $11,500. The ending inventory balance was $1,250. If Woods Co. uses the periodic inventory system, what is the cost of goods available for sale?

Question

Quizplus · Accepted Answer

The cost of goods available for sale is calculated by adding the beginning inventory to the purchases made during the period. Therefore, $2,600 (beginning inventory) + $11,500 (purchases) = $14,100.

Woods Company Had an Inventory Balance of $2,600 on January