Question

Ziad Company had a beginning inventory on January 1 of 270 units of Product 4-18-15 at a cost of $19 per unit. During the year, the following purchases were made.
Mar. 15 720 units at $22
Sept. 4 630 units at $25
July 20 450 units at $23
Dec. 2 180 units at $28
1,800 units were sold.

Ziad Company uses a periodic inventory system.

Determine the cost of goods available for sale.

Answer 1

Answer:

Cost of goods available for sale= $52,110

Explanation:

Giving the following information:

January 1: 270 units at $19 per unit

Mar. 15: 720 units at $22

Sept. 4: 630 units at $25

July 20: 450 units at $23

Dec. 2: 180 units at $28

The cost of goods available for sales is a previous step to calculating the cost of goods sold. It is the total cost of the units prepared to be sold.

Cost of goods available for sale= 270*19 + 720*22 + 630*25 + 450*23 + 180*28= $52,110