Question

Cold Creek Kayaks, a manufacturing company, has beginning finished goods inventory of $25,000; cost of goods manufactured of $320,000; and ending finished goods inventory of $32,000. What is the cost of goods available for sale?

Answer 1

Cost of goods available for sale is calculated by adding beginning finished goods inventory to cost of goods manufactured and subtracting ending finished goods inventory, resulting in $313,000 for Cold Creek Kayaks.

Step-by-step explanation:

The cost of goods available for sale is calculated by adding the beginning finished goods inventory to the cost of goods manufactured and then subtracting the ending finished goods inventory.

The formula is as follows:

Cost of Goods Available for Sale = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory

Using the provided numbers, we can calculate:

Cost of Goods Available for Sale = $25,000 + $320,000 - $32,000

Cost of Goods Available for Sale = $313,000

Answer 2

The cost of goods available for sale is $345,000

Step-by-step explanation:

Beginning finished goods inventory $25,000

Cost of Goods manufactured $320,000

Cost of Goods available for sale,

= Beginning finished goods inventory + Cost of Goods manufactured

= $25,000 + $320,000

= $345,000