The following data is for Atlantis Merchandising, which uses a periodic inventory system: Sales revenue $600,000 Interest revenue 12,000 Freight in  42,000 Beginning inventory 77,000 Purchase discounts  19,000 Sales returns and allowances 33,000 Operating expenses   77,000 Interest expense 9,000 Ending inventory    81,000 Purchases 415,000 Sales discounts     35,000 Omar Atlantis, Withdrawals 71,000 Purchase returns and allowances 39,000 Referring to the table, the cost of goods available for Atlantis Merchandising is: a.$408,000 b.$441,000 c.$434,000 d.$476,000

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A:

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.