Question

In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the “Total raw materials available” is computed by adding together the “Beginning raw materials inventory” and:

Answer 1

Answer:

Material Purchased in the Period

Explanation:

The costs of goods sold, abbreviated as COGS, represents the direct costs incurred in manufacturing products meant for sale in a particular period.  The direct cost includes material, labor, and overheads incurred in manufacturing or purchasing products sold in that period.

The formula for calculating COGS

COGS = opening inventory + purchases -ending inventory

Adding opening inventory and purchases results in the total quantity available for sale in the period.