Question

Wattan Company reports beginning inventory of 15 units at $35 each. Every week for four weeks it purchases an additional 15 units at respective costs of $36, $37, $40, and $45 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

Cost of goods available for sale = $2,895

units available for sale = 75 units

Explanation:

To simplify the calculations required, we will group the entries into a tabular form, and compute the totals from the table:

Inventory No. of units cost per unit($) overall cost($)

Beginning 15 35 525

week 1 15 36 540

week 2 15 37 555

week 3 15 40 600

week 4 15 45 675

Total 75 2,895

Therefore:

Total Number number of units available for sale = 75 units

Total cost of goods available for sale = $2,895