Question

Wattan Company reports beginning inventory of 10 units at $60 each. Every week for four weeks it purchases an additional 10 units at respective costs of $61, $62, $65, and $70 per unit for weeks 1 through 4. Compute the cost of goods available for sale and the units available for sale for this four-week period. Assume that no sales occur during those four weeks.

Answer 1

Answer:

cost of goods available for sales= $3,180

Number of units= 50 units

Explanation:

Giving the following information:

Wattan Company reports beginning inventory of 10 units at $60 each. Every week for four weeks it purchases an additional 10 units at respective costs of $61, $62, $65, and $70 per unit for weeks 1 through 4.

To calculate the cost of goods available for sales, we need to use the following formula:

cost of goods available for sales= beginning inventory + cost of goods purchase during the year

cost of goods available for sales= 10*60 + 10*61 + 10*62 + 10*65 + 10*70

cost of goods available for sales= $3,180

Number of units= 5*10= 50 units