Question

Stone​ Beauty, Inc. is a merchandiser of stone ornaments. The company sold 7 comma 500 units during the year. The company has provided the following​ information: Sales Revenue $ 554 comma 000 Purchases​ (excluding freight​ in) 304 comma 000 Selling and Administrative Expenses 66 comma 000 Freight In 13 comma 000 Beginning Merchandise Inventory 44 comma 000 Ending Merchandise Inventory 43 comma 000 What is the cost of goods available for sale for the​ year?

Answer 1

Answer:

The cost of goods available for sale for the​ year is $317,000

Explanation:

The computation of the cost of goods available for sale for the​ year is shown below by applying the formula:

= Beginning Merchandise Inventory + Purchases​ (excluding freight​ in) + Freight In - Ending Merchandise Inventory  

= $44,000 + $304,000 + $13,000 - $43,000

= $317,000

The remaining items which are given in the question are not be considered in the computation part because the items are used for computing the net income, not for cost of goods available for sale for the​ year

Answer 2

Answer:

Cost of goods available for sale 344,000

Cost of goods sold                      301,000

Explanation:

cost of goods available for sale :

Is the sum of all tehcost that the firm could have sold during the period.

Is the sum of beginning inventory (goods from prior periods) and the purchase done in the period

beginning inventory + purchase

beginnning inventory 44,000

purchase =                304,000

Cost of goods available for sale 344,000

Then, cost of goods available for sale - ending inventory = COGS

344,000 - 43,000 = 301,000 COGS