Glee Distribution markets CDs of the performing artist Unique. At the beginning of October, Glee had in beginning inventory 2,520 of Unique's CDs with a unit cost of $7. During October, Glee made the following purchases of Unique's CDs.

Oct. 3 2,500 @ $8 Oct. 19 3,000 @ $10

Oct. 9 3,500 @ $9 Oct. 25 4,000 @ $11

units were sold. Glee uses a periodic inventory system.

Determine the cost of goods available for sale.

Calculate cost per unit.

Question

Business

Nathen Jones

23 February, 19:24

Glee Distribution markets CDs of the performing artist Unique. At the beginning of October, Glee had in beginning inventory 2,520 of Unique's CDs with a unit cost of $7. During October, Glee made the following purchases of Unique's CDs.

Oct. 3 2,500 @ $8 Oct. 19 3,000 @ $10

Oct. 9 3,500 @ $9 Oct. 25 4,000 @ $11

units were sold. Glee uses a periodic inventory system.

Determine the cost of goods available for sale.

Calculate cost per unit.

+5

Answers (1)

Know the Answer?

Evangeline Chandler · Answer 1

The cost of goods available for sale. is 143,140.

Cost Per unit $9.22

Explanation:

Cost of Goods available for sale

Opening Inventory (2520 x 7) $17,640

Purchases

Oct. 3, (2,500 @ $8) $20,000

Oct. 19, (3,000 @ $10) $30,000

Oct. 9, (3,500 @ $9) $31,500

Oct. 25, (4,000 @ $11) $44,000

Total Purchase in October $125,500

Cost of Goods available for sale $143,140

Cost Per Unit = 143,140 / (2520+2500+3000+3500+4000)

Cost Per Unit = 143,140 / 15,520

Cost Per Unit = $9.22 per unit