A physical inventory on December 31 shows 4,000 units on hand. Eneri sells the units for $13 each. The company has an effective
tax rate of 20%. Eneri uses the periodic inventory method. What is the cost of goods available for sale
1 answer:
Answer: $29,000
Explanation:
Hello.
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Cost of Goods sold using First in First Out where the earliest goods are sold first.
Seeing as we have 4,000 units left, that means that none of the stock purchased on the 8th of November have been sold.
1,000 units of the stock purchased on the 18th of June remain.
Cost of Goods sold is therefore,
= 1,000*8 + 3,000 * 7
= $29,000
Cost of goods for Inventory available is $29,000
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