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Baden Shoe Store has a beginning merchandise inventory of $15k. During the period, purchases were $70k; purchase return $2k; and freight-in $5k. A physical count of inventory at the end if the period revealed that $10k was still on hand. The Cost of goods available for sales are

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Answer:

$88,000

Explanation:

Merchandise inventory at the beginning = $ 15000

Purchases = $ 70000

Purchase returns = $ 2000

Freight in = $ 5000

Now,

Cost of Goods available for Sales = Inventory at the beginning + Cost of Purchases

Now, the total cost of purchase = Purchases + Freight In – Purchases Returns

on substituting the values in the above formula, we have

Cost of Purchases = $70,000 + $5,000 - $2,000

Cost of Purchases = $73,000

thus,

Cost of Goods available for Sales = Inventory at the beginning + Cost of Purchases

or

The cost of goods available for sales = $15,000 + $73,000

The cost of goods available for sales = $88,000

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