# Cost of goods available for sale & Purchases

Beginning Inventory \$20,000
Purchases
Purchase are & A \$5,000
Frt In \$8,000
Cost of Goods Sold \$233,000
Sales \$290.00
Sales Return \$11000
Ending Inventor
Gross profit on Sale 446,000

Stumped on how to find Net Purchases and Cost of Goods Available for sale. I am trying to figure this problem out to be able to do with another problem and I am stumped on the equation to finding missing numbers.

Linda DeWolf

 CaptainForest Posts: 3,684, Reputation: 2085 Ultra Member #2 Mar 24, 2008, 03:52 PM
Beginning Inventory + Net Purchases = Goods Available For Use
COGS = Goods Available For Use – Ending Inventory

Net Purchases = Purchases + Freight In – Discounts (like purchase returns and allowances)
 shlumiel Posts: 1, Reputation: 1 New Member #3 Jul 9, 2012, 03:06 AM
where are the sales in this equation?
 pready Posts: 2,678, Reputation: 897 Ultra Member #4 Jul 9, 2012, 06:28 AM
Sales have nothing to do with purchases or Cost of Goods available for sale.