WAEC Accounting 2023 Paper

Concept:The cost of goods available for sale means the total cost of all inventory that a business could sell during the year.Explanation:The correct formula is:$$\text{Cost of goods available for sale} = \text{Opening stock} + \text{Purchases} + \text{Carriage inwards}$$Returns inwards are sales returns, so they are subtracted from sales, not added to purchases.Given figures: Opening stock $= D14{,}100$, Purchases $= D160{,}000$, Carriage inwards $= D740$.Now calculate:$$D14{,}100 + D160{,}000 + D740 = D174{,}840$$So the returns inwards amount of $D620$ should be ignored in this calculation.Answer:The correct cost of goods available for sale is $D174{,}840$. This amount is not listed among the given options, so the options appear to contain an error.