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Jilda Rukhaia
on Dec 16, 2024

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Net purchases plus freight-in determines

A) cost of goods sold.
B) cost of goods available for sale.
C) cost of goods purchased.
D) total goods available for sale.

Cost of Goods Available

The total inventory cost of goods that a company has available for sale at the beginning of an accounting period, including purchases made during the period.

Net Purchases

Net purchases are the total purchases made by a business after subtracting any returns, allowances, and discounts from the gross purchases.

Freight-In

The cost associated with the transportation of goods from the supplier to the buyer, typically added to the cost of purchases.

  • Estimate the cost of goods sold and perceive its significance on gross profit.
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JW
James WoodruffDec 20, 2024
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