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A physical inventory on December 31 shows 4,000 units on hand. Eneri sells the units for $13 each. The company has an effective tax rate of 20%. Eneri uses the periodic inventory method. What is the cost of goods available for sale

User Srikanta
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1 Answer

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Answer: $29,000

Step-by-step explanation:

Hello.

Your question was incomplete so I attached a picture showing the missing details.

Cost of Goods sold using First in First Out where the earliest goods are sold first.

Seeing as we have 4,000 units left, that means that none of the stock purchased on the 8th of November have been sold.

1,000 units of the stock purchased on the 18th of June remain.

Cost of Goods sold is therefore,

= 1,000*8 + 3,000 * 7

= $29,000

Cost of goods for Inventory available is $29,000

A physical inventory on December 31 shows 4,000 units on hand. Eneri sells the units-example-1
User Peter Cordes
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