Question

Moath Company reports the following for the month of June.

Date Explanation Units Unit Cost Total Cost
June 1 Inventory 200 $5 $1,000
12 Purchase 400 6 2,400
23 Purchase 300 7 2,100
30 Inventory 100

Assume a sale of 440 units occurred on June 15 for a selling price of $8 and a sale of 360 units on June 27 for $9.

Required:
Calculate cost of goods available for sale.

Answer 1

Answer: $5,500

Step-by-step explanation:

The Cost of Goods available for sale is the price of the inventory and purchases that the company intends to sell.

June 1 Inventory = $1,000

June 12 Purchase = $2,400

June 23 Purchase = $2,100

Cost of goods available for sale = 1,000 + 2,400 + 2,100

= $5,500