How does ending inventory affect the calculation of cost of goods sold?

• A. Ending inventory is subtracted from goods available for sale to determine cost of goods sold.
• B. Ending inventory is added to goods available for sale to determine cost of goods sold.
• C. Ending inventory is multiplied by goods available for sale to determine cost of goods sold.
• D. Ending inventory is divided by goods available for sale to determine cost of goods sold.

Answer: (A)