BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Answer and Explanation: The cost of beginning inventory plus the cost of net purchases for the period is equal to an amount described as cost of goods available for sale. Net purchases include the purchase price of the goods and freight-in less any discounts, returns and allowances.

Detailed explanation-2: -Accounting Principles I The cost of goods available for sale equals the beginning value of inventory plus the cost of goods purchased. The cost of goods sold equals the cost of goods available for sale less the ending value of inventory.

Detailed explanation-3: -Beginning inventory plus net purchases is: B. Merchandise available for sale. Seeing the above format, we can conclude that beginning inventory plus net purchases results in the cost of merchandise available for sale.

Detailed explanation-4: -To calculate the cost of goods available for sale, you add the total value of current inventory to the cost of producing that inventory. For example, if a business has $5, 000 worth of products that are ready to sell and those products cost $3, 000 to produce, their total cost of goods available to sell is $8, 000.

Detailed explanation-5: -Beginning inventory is the value of your company’s inventory at the beginning of an accounting period. To calculate beginning inventory, you can use the following formula: (COGS + ending inventory)-inventory purchases.