Use this information to answer the following question. The selected accounts and balances for Keystone Market appear as follows:
Cost of goods available for sale would appear on the income statement as
A) $124,000.
B) $71,000.
C) $131,000.
D) $61,000.

Question

Use this information to answer the following question. The selected accounts and balances for Keystone Market appear as follows:
 Cost of goods available for sale would appear on the income statement as
A) $124,000. 
B) $71,000. 
C) $131,000. 
D) $61,000.

Quizplus · Accepted Answer

Cost of Goods Available for Sale includes the beginning inventory plus the cost of goods purchased during the period.

Beginning Inventory = $28,000 
Cost of Goods Purchased = $103,000 
Cost of Goods Available for Sale = $28,000 + $103,000 = $131,000

Therefore, the correct answer is C, $131,000.

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