Asked by
Natalie Espinoza
on Nov 14, 2024Verified
Bradshaw Shoe Store has a beginning inventory of $48000. During the period purchases were $180000; purchase returns $15000; and freight-in $6000. A physical count of inventory at the end of the period revealed that $30000 was still on hand. The cost of goods available for sale was
A) $165000.
B) $171000.
C) $189000.
D) $219000.
Cost of Goods Available
The total cost of goods a company has to sell during a specific period, calculated by adding the beginning inventory to the cost of goods purchased.
Purchase Returns
Refers to the process of returning goods previously bought to the supplier due to various reasons like defects or dissatisfaction.
Freight-In
The cost associated with transporting goods into a business, which is often added to the cost of inventory.
- Assess the cost of goods sold and appreciate its role in shaping gross profit.
Verified Answer
AI
Learning Objectives
- Assess the cost of goods sold and appreciate its role in shaping gross profit.