Digipro Inc.is a wholesaler of photography equipment.The activity for the VTC cameras during July is shown below:

-Following are the account balances from Browne Company's income statement: Given this information,the cost of merchandise available for sale during 2014 is

Question

Digipro Inc.is a wholesaler of photography equipment.The activity for the VTC cameras during July is shown below:
 
-Following are the account balances from Browne Company's income statement:  Given this information,the cost of merchandise available for sale during 2014 is

Quizplus · Accepted Answer

The cost of merchandise available for sale can be calculated using the formula: beginning inventory + purchases = cost of merchandise available for sale. 
In this case, the beginning inventory is not given, but the purchases can be calculated by subtracting the ending inventory from the cost of goods sold. 
Using the given account balances: 
Purchases = Cost of goods sold - Ending inventory 
Purchases = $64,000 - $5,000 
Purchases = $59,000

Therefore, the cost of merchandise available for sale is: 
Beginning inventory + Purchases 
= $10,000 + $59,000 
= $69,000

Hence, the answer is choice C.