Question

The formula from 3) can be rewritten as “Beginning” + “Purchases” = “Cost of Goods Sold” + “Ending”. The sum of “Beginning” + “Purchases” is often referred to as “Available for sale”. These items are either sold and costs included in the expense account “Cost of Goods Sold” or are unsold and remain in “Ending” inventory. The sum of COGS and ending inventory will always equal the Inventory “available for sale” and is referred to as inventory “accounted for”. Return to 3) above and calculate the inventory available for sale for each of the 4 companies:

Dave’s Doors                ____________________   (60,000 beginning + 40,000 purchases)

Bill’s Bakery                 ____________________

Shelly’s Shampoo         ____________________

Greg’s Groceries           ____________________

Answer 1