Question

Required information The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March Units Sold at Retail Units Acquired at Cost 240 units@ $53.80 per unit 295 units @ $58.89 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9. Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 400 units@ $88.80 per unit 155 units @ $63.89 per unit 298 units@ $65.80 per unit 270 units @ $98.89 per unit 980 units 670 units Required: 1. Compute cost of goods available for sale and the number of units available for sale. Cost of Goods Available for Sale # of units Cost per Cost of Goods Available Unit for Sale Beginning inventory Purchases March 5 March 18 March 25 Total

Answer 1

1.

	Cost of Good Available for Sale
	# of Units	Cost per Unit	Cost of Goods Available for Sale
Beginning inventory	240	53.80	12,912
Purchases:
March 5	295	58.80	17,346
March 18	155	63.80	9,889
March 25	290	65.80	19,082
Total	980		$59,229

2.

ending inventory = Number of units available for sale - Number of units sold

= 980-670

= 210 units

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