Question

Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December 31, the accounting records for the most popular item in inventory showed the following: Transactions Units Unit Cost Beginning inventory, January 1 400 $3.00 Transactions During the year: a. Purchase, January 30 300 3.40 b. Purchase, May 1 460 4.00 c. Sale ($5 each) (160) d. Sale ($5 each) (700) Required: a. Compute the amount of goods available for sale.

Answer 1

Answer:

cost of goods available for sale= $4,060

Explanation:

Giving the following information:

Beginning inventory, January 1: 400 $3.00

Purchase, January 30: 300 3.40

Purchase, May 1: 460 4.00

The cost of goods available for sale is the sum of the beginning inventory and the purchases of the period:

cost of goods available for sale= beginning inventory + purchase

cost of goods available for sale= 400*3 + 300*3.4 + 460*4

cost of goods available for sale= $4,060