Cost of goods available for sale is the maximum amount of goods, or inventory, that a company can possibly sell during an accounting period. It has the formula: Beginning Inventory (at the start of accounting period) + purchases (within the accounting period) + Production (within the accounting period) = cost of goods available for sale Alternatively the costs of goods available for sales can be computed from the costs of sales: Costs of goods available for sale − Ending Inventory − Inventory write-downs = Cost of goods sold