Answer:
Cost of goods available for sale=$1,640
Explanation:
To calculate the cost of goods available for sale, we need to first calculate the available units of inventory;
Available inventory=Inventory purchased-inventory sold
where;
Inventory purchased are as follows;
On June 1>>>>>purchased 410 units each at $8
On June 12>>>>purchased 820 units each at $9
On June 23>>>>purchased 615 units each at $10
Total inventory purchased=(410+820+615)=1,845 units
Inventory sold are as follows;
On June 15>>>>sold 902 units each at $11
On June 27>>>>sold 738 units each at $12
Total inventory sold=(902+738)=1,640 units
Available inventory=(1,845-1,640)=205 units
The cost of goods sold can be expressed as;
Cost of goods available for sale=Cost per unit×number of units
where;
Number of units of inventory=205
Cost per unit=least cost per unit=$8
replacing;
Cost of goods available for sale=(8×205)=1,640
Cost of goods available for sale=$1,640
