Beginning Inventory Plus Net Purchases Is What?

Opening or Beginning Inventory plus Net Purchases is equal to the Cost of Goods Available for Sale as it is the cost of goods available for sale purposes and it doesn't include damaged or destroyed goods. The remaining goods that are not sold during the accounting cycle are called closing inventory.

Basically, cost of goods available for sale formula is the part of Cost of Goods Sold Or Cost of Sales formula that is shown below:

                                                                      Rs.

Opening Inventory                                       XXX

Add: Purchases                                           XXX

                                                                  _______

Cost of Goods Available for Sale                 XXX

Less: Closing Inventory                               XXX

                                                                   _______

Cost of Sales                                                XXX

                                                                    _______

So, Cost of Goods Available for sale = Opening Inventory + Net Purchases