Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki's records show the following for the month of January. Sales totaled 310 units.

Date Units Unit Cost Total Cost

Beginning Inventory January 1 220 80 $17,600

Purchase January 15 310 90 27,900

purchase January 24 270 110 29,700

Calculate the number and cost of goods available for sale.

Question

Business

Sophie

13 September, 05:20

Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki's records show the following for the month of January. Sales totaled 310 units.

Date Units Unit Cost Total Cost

Beginning Inventory January 1 220 80 $17,600

Purchase January 15 310 90 27,900

purchase January 24 270 110 29,700

Calculate the number and cost of goods available for sale.

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Answers (1)

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Jayda Mcdaniel · Answer 1

Number = 1,490

Cost of goods available for sale = $75,200

Explanation:

Computing the number as:

Number = (Beginning inventory + Purchases + Purchases) - Sales

Number = (1,220 + 310 + 270) - 310

Number = 1,800 - 310

Number = 1,490

Computing the cost of goods available for sale as:

Cost of goods available for sale = Total cost of beginning inventory + Total Cost of purchase + Total Cost of purchase

Cost of goods available for sale = $17,600 + $27,900 + $29,700

Cost of goods available for sale = $75,200