Question

given the following, calculate the cost of goods available for sale. cost of goods manufactured: $234,000 beginning finished goods inventory of $18,000 ending finished goods inventory of $24,000

Answer 1

To find the cost of goods available for sale, add the beginning finished goods inventory to the cost of goods manufactured and then subtract the ending finished goods inventory. In this scenario, the calculation is $234,000 + $18,000 - $24,000, resulting in a cost of goods available for sale of $228,000.

Step-by-step explanation:

To calculate the cost of goods available for sale, you need to consider the cost of goods manufactured and the inventory changes. Here's how you do it:

Cost of Goods Available for Sale = Cost of Goods Manufactured + Beginning Finished Goods Inventory - Ending Finished Goods Inventory

In this case:

Cost of Goods Manufactured: $234,000

Beginning Finished Goods Inventory: $18,000

Ending Finished Goods Inventory: $24,000

Using these values, the calculation is as follows:

$234,000 + $18,000 - $24,000 = $228,000

Therefore, the cost of goods available for sale is $228,000.