Use this information to answer the following question. The selected accounts and balances for Keystone Market appear as follows:
Cost of goods available for sale would appear on the income statement as
A)$124,000.
B)$71,000.
C)$131,000.
D)$61,000.

Question

Use this information to answer the following question. The selected accounts and balances for Keystone Market appear as follows:
 Cost of goods available for sale would appear on the income statement as
A)$124,000. 
B)$71,000. 
C)$131,000. 
D)$61,000.

Quizplus · Accepted Answer

Cost of goods available for sale is calculated by adding the beginning inventory and the cost of goods purchased during the period. Therefore, Cost of goods available for sale = Beginning inventory + Purchases = $61,000 + $70,000 = $131,000. This amount will appear on the income statement as part of the Cost of Goods Sold section.

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