Cost of Goods Available for Sale
Encyclopedia
Cost of goods available for sale is the maximum amount of goods, or inventory
, that a company can possibly sell during this fiscal year. It has the formula:
Beginning Inventory (at the start of this year)+ purchases (within this year)+ Production
(within this year)= cost of goods available for sale
Notice that purchases and production might not be the same throughout the year, since purchase cost and production cost might vary during the year. But at the end, the total cost of purchases and production are added to beginning inventory cost to give cost of goods available for sale.
Inventory
Inventory means a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished. This remains the prime meaning in British English...
, that a company can possibly sell during this fiscal year. It has the formula:
Beginning Inventory (at the start of this year)+ purchases (within this year)+ Production
Production, costs, and pricing
The following outline is provided as an overview of and topical guide to industrial organization:Industrial organization – describes the behavior of firms in the marketplace with regard to production, pricing, employment and other decisions...
(within this year)= cost of goods available for sale
Notice that purchases and production might not be the same throughout the year, since purchase cost and production cost might vary during the year. But at the end, the total cost of purchases and production are added to beginning inventory cost to give cost of goods available for sale.