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27 June, 20:50

Bufford Corporation had reported the following amounts at December 31, 2022: sales revenue $184,000, ending inventory $11,600, beginning inventory $17,200, purchases $60,400, purchase discounts $3,000, purchase returns and allowances $1,100, freight-in $600, and freight-out $900. Calculate the cost of goods available for sale. Select one: a. $69,400. b. $74,100. c. $56,900. d. $197,700.

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  1. 27 June, 22:30
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    Option (b) $74,100

    Explanation:

    Data provided in the question:

    Sales revenue = $184,000

    Ending inventory = $11,600

    Beginning inventory = $17,200

    Purchases = $60,400

    Purchase discounts = $3,000

    Purchase returns and allowances = $1,100

    Freight-in = $600

    Freight-out = $900

    Now,

    Cost of goods available for sale

    = Beginning inventory + Purchases + Freight-in - Purchases discounts - Purchase returns and allowances

    = $17,200 + $60,400 + $600 - $3,000 - $1,100

    = $74,100

    Hence,

    Option (b) $74,100
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