For the current year, the following data were taken from the accounting records: CHAPTER 4
Sales $900,000
Sales Returns and Allowances $30,000
Purchases $500,000
Purchase Returns and Allowances $8,000
Discount received $4,000
Freight-in $2,000
Beginning Inventory $90,000
Ending Inventory $130,000
What was the cost of goods available for sale?
A. $620,000
B. $584,000
C. $580,000
D. $530,000
E. None of the above
Can someone please explain the steps on how to calculate the cost of goods available for sale?
Sales $900,000
Sales Returns and Allowances $30,000
Purchases $500,000
Purchase Returns and Allowances $8,000
Discount received $4,000
Freight-in $2,000
Beginning Inventory $90,000
Ending Inventory $130,000
What was the cost of goods available for sale?
A. $620,000
B. $584,000
C. $580,000
D. $530,000
E. None of the above
Can someone please explain the steps on how to calculate the cost of goods available for sale?