What is included in the cost of goods available for sale?

The cost of goods available for sale includes all costs associated with acquiring or producing inventory that is available for sale during a specific period. This is calculated by taking the beginning inventory and adding the cost of any purchases made throughout the period.

In the context of the correct choice, total current inventory refers to the sum of the inventory that was available at the beginning of the period, plus the new inventory (purchases) that was added during that same period. The cost of producing inventory incorporates all the direct costs associated with manufacturing or buying goods, making this the most comprehensive definition of what constitutes the cost of goods available for sale.

This choice accurately encompasses the necessary elements — both existing and new inventory — that an organization must account for to determine the total goods available for sale.