FAD Company uses a periodic inventory system and its inventory records for the period contain the following information:

-Use the information above to answer the following question.What is the amount of cost of goods available for sale?
A) $11,250
B) $17,500
C) $5,000
D) $13,750

Question

FAD Company uses a periodic inventory system and its inventory records for the period contain the following information:
 
-Use the information above to answer the following question.What is the amount of cost of goods available for sale?
A) $11,250 
B) $17,500 
C) $5,000 
D) $13,750

Quizplus · Accepted Answer

The cost of goods available for sale is calculated by adding the beginning inventory to the purchases made during the period. The correct choice is $11,250, which is the sum of these amounts.

FAD Company Uses a Periodic Inventory System and Its Inventory