Asked by Thembelihle Khuzwayo on Jul 12, 2024
Verified
Beginning inventory plus the cost of goods purchased equals
A) cost of goods sold.
B) cost of goods available for sale.
C) net purchases.
D) total goods purchased.
Cost of Goods Purchased
The total cost incurred by a company to acquire goods or raw materials for production, including any additional expenses directly related to the purchase.
Beginning Inventory
The value of goods available for sale at the start of an accounting period, used for calculating cost of goods sold.
- Engage in the assessment of inventory costs via FIFO, LIFO, and Weighted Average to precisely estimate the cost of goods sold and the valuation of ending inventory.
Verified Answer
NB
Nyliek Brooks-AllenJul 18, 2024
Final Answer :
B
Explanation :
Beginning inventory is the value of goods a business has at the beginning of an accounting period. Cost of goods purchased is the value of all goods purchased during the accounting period. Adding these two values together gives the total value of goods available for sale.
Learning Objectives
- Engage in the assessment of inventory costs via FIFO, LIFO, and Weighted Average to precisely estimate the cost of goods sold and the valuation of ending inventory.
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