Asked by Meera Patel on Jul 28, 2024
Verified
The cost of goods available for sale consists of the beginning inventory plus the cost of goods purchased.
Cost of Goods Available
It represents the total value of inventory available for sale during a period, calculated by adding the cost of goods purchased or manufactured to the opening inventory.
- Calculate inventory costs using different inventory costing methods (FIFO, LIFO, Weighted Average) to determine cost of goods sold and ending inventory.
Verified Answer
WB
Writers BoardJul 29, 2024
Final Answer :
True
Explanation :
This is true according to the formula for calculating cost of goods sold (COGS), which is beginning inventory + cost of goods purchased - ending inventory. The cost of goods available for sale is the sum of beginning inventory and cost of goods purchased, which is used in the calculation of COGS.
Learning Objectives
- Calculate inventory costs using different inventory costing methods (FIFO, LIFO, Weighted Average) to determine cost of goods sold and ending inventory.
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