Cost of goods available for sale is equal to:

Question

Quizplus · Accepted Answer

Cost of goods available for sale includes both the beginning inventory and the net purchases made during a specific period. Therefore, the correct formula is beginning inventory + net purchases. Option B deducts the ending inventory from the total available for sale, which gives the cost of goods sold, not the cost of goods available for sale. Option C subtracts the ending inventory from the beginning inventory, which gives the cost of goods sold, not the cost of goods available for sale. Option D deducts the ending inventory from the net purchases, which gives the cost of goods sold, not the cost of goods available for sale.

Cost of Goods Available for Sale Is Equal To