For a manufacturing firm cost of goods available for sale is computed by adding the beginning finished goods inventory to
A) cost of goods purchased.
B) cost of goods manufactured.
C) net purchases.
D) total manufacturing costs.

Question

Quizplus · Accepted Answer

Cost of goods available for sale refers to the total cost of the goods that were available for sale during a specific period. This cost includes the beginning finished goods inventory and any additional costs that were incurred to manufacture or purchase more goods. Therefore, the cost of goods available for sale is computed by adding the beginning finished goods inventory to the cost of goods manufactured.

For a Manufacturing Firm Cost of Goods Available for Sale