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kirill115 [55]
3 years ago
15

Arbor Corporation had reported the following amounts at December 31, 2014: Sales revenue $184,000: ending inventory $11,600: beg

inning inventory $17,200: purchases $60,400: purchases discounts $3,000: purchase returns and allowances $1,100: freight-in $600: freight-out $900. Calculate the cost of goods available for sale. $197,700 $56,900 $74,100 $69,400
Mathematics
1 answer:
NeTakaya3 years ago
8 0

Answer:

$74,100

Step-by-step explanation:

The Cost of goods available for sale is equal to beginning inventory plus purchase and its additional expenses (freight-in) expense and subtracted by purchase discounts and purchase returns and allowances. Ending inventory and freight-out expenses should NOT be included in this case and only be used in case the cost of goods sold was wanted. Therefore:

Cost of goods available = COA

COA = 60,400+17,200-3,000-1,100+600 = 74,100

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