Question

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.

Answer 1

Number = 1,490

Cost of goods available for sale = $75,200

Step-by-step 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