Question

Wattan Company reports beginning inventory of 25 units at $39 each. Every week for four weeks it purchases an additional 25 units at respective costs of $40, $41, $44, and $49 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

Wattan Company has a total of 125 units of inventory valued at $5325 available for sale after four weeks, calculated by summing the beginning inventory cost and the cost of additional inventory purchased each week.

Step-by-step explanation:

The question pertains to inventory cost accounting within the realm of business studies. To compute the cost of goods available for sale and the units available for sale for Wattan Company, one must aggregate the cost of the beginning inventory with the cost of purchases over the four-week period.

• Beginning inventory: 25 units at $39 each = $975
• Week 1 purchase: 25 units at $40 each = $1000
• Week 2 purchase: 25 units at $41 each = $1025
• Week 3 purchase: 25 units at $44 each = $1100
• Week 4 purchase: 25 units at $49 each = $1225

The cost of goods available for sale is therefore the sum of these amounts:

$975 (beginning inventory) + $1000 (week 1) + $1025 (week 2) + $1100 (week 3) + $1225 (week 4) = $5325.

The units available for sale are the total units from beginning inventory and purchases:

25 (beginning inventory) + 25 (week 1) + 25 (week 2) + 25 (week 3) + 25 (week 4) = 125 units.

Conclusively, Wattan Company has 125 units of inventory valued at $5325 available for sale after the four-week period.

Answer 2

Inventory= $5,325

Step-by-step explanation:

Giving the following information:

Wattan Company reports beginning inventory of 25 units at $39 each. Every week for four weeks it purchases an additional 25 units at respective costs of $40, $41, $44, and $49 per unit for weeks 1 through 4.

Inventory= 25*39 + 25* 40 + 25*41 + 25*44 + 25*49= $5,325