Cost of Goods Available for Sale


Cost of Goods Available for Sale

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 have 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.

References

1. Intermediate Accounting 8th Canadian Edition, page 433, Kieso, Weygandt, Warfield, Young, Wiecek, John Wiley & Sons Canada, Ltd, 2007, ISBN 978-0-470-83979-9


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • 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… …   Wikipedia

  • Cost of goods sold — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • sale — An agreement between a buyer and a seller on the price to be paid for a security, followed by delivery. Bloomberg Financial Dictionary * * * sale sale [seɪl] noun 1. [countable, uncountable] COMMERCE the act of selling someone property, food, or… …   Financial and business terms

  • cost — The opposite of revenue. An expense that reflects the price of purchasing goods, services and financial instruments. A cash cost means that cash is given up today to the purchase. Also, the purchase price of an investment, which is compared to… …   Financial and business terms

  • Goods and Services Tax (Canada) — The Canadian Goods and Services Tax (GST) (French: Taxe sur les produits et services, TPS) is a multi level value added tax introduced in Canada on January 1, 1991, by Prime Minister Brian Mulroney and finance minister Michael Wilson. The GST… …   Wikipedia

  • Average cost method — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • Weighted Average Cost — is a method of calculating Ending Inventory cost. It takes Cost of Goods Available for Sale and divides it by the total amount of goods from Beginning Inventory and Purchases. This gives a Weighted Average Cost per Unit. A physical count is then… …   Wikipedia

  • Moving-Average Cost — is a method of calculating Ending Inventory cost. Assume that both Beginning Inventory and beginning inventory cost are known. From them the Cost per Unit of Beginning Inventory can be calculated. During the year, multiple purchases were made.… …   Wikipedia

  • Customer Cost — refers not only to the price of a product, but also encompasses the purchase costs as well as use costs and post use costs. Purchase costs mainly consist of the cost of searching for a product, gathering information about it and obtaining it. The …   Wikipedia

  • Historical cost — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.