Cost of Goods Available for Sale Formula

Cost of Goods Available for Sale Formula

Cost of Goods available for sale is calculated by the following formula. This concept is quite different from the cost of Goods sold.

Cost of Goods Sold=Opening Finished Goods + Good Manufactured

Example

Opening Finished Goods =                   15,000

Goods Produced =                              20,000

Closing Finished Goods                        15,000

Solution

Opening Finished Goods =                   15,000

Add: Goods Produced =                       20,000

Cost of Goods available for Sale      35,000