Cost of goods available for sale is equal to
A) delivered cost of purchases minus Freight In.
B) delivered cost of purchases plus Freight In.
C) delivered cost of purchases plus beginning inventory.
D) delivered cost of purchases minus beginning inventory.
E) Freight In plus ending inventory.

Question

Quizplus · Accepted Answer

Cost of goods available for sale is the total cost of all the inventory items that were available for sale during a particular period. It can be calculated by adding the cost of beginning inventory to the cost of goods purchased (delivered cost of purchases). Therefore, the correct answer is C, which is delivered cost of purchases plus beginning inventory.

Cost of Goods Available for Sale Is Equal to