Cost of goods available for sale is equal to beginning inventory + Cost of Goods Sold.

Name: Cost of goods available for sale is equal to beginning inventory + Cost of Goods Sold.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The correct formula for cost of goods available for sale is beginning inventory + purchases, not beginning inventory + cost of goods sold. Cost of goods sold is a separate calculation, equal to the cost of goods available for sale minus ending inventory.

Cost of Goods Available for Sale Is Equal to Beginning