Question

Wattan Company reports beginning inventory of 11 units at $65 each. Every week for four weeks it purchases an additional 11 units at respective costs of $66, $67, $70, and $75 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

Activity Units Units cost Cost of Goods Available

Beginning Inventory 11 $65.00 $715

1st week purchase 11 $66.00 $726

2nd week purchase 11 $67.00 $737

3rd week purchase 11 $70.00 $770

4th week purchase 11 $75.00 $825

Units available for sale 55

Cost of goods available for sale $3,773