Warnerwoods Company uses a perpetual inventory system. It entered into the follo

Question

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

Required:
1. Compute cost of goods available for sale and the number of units available for sale.

Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 240 units @ $53.80 per unit Mar. 5 Purchase 295 units @ $58.80 per unit Mar. 9 Sales 400 units @ $88.80 per unit Mar. 18 Purchase 155 units @ $63.80 per unit Mar. 25 Purchase 290 units @ $65.80 per unit Mar. 29 Sales 270 units @ $98.80 per unit Totals 980 units 670 units

Explanation / Answer

1. Compute cost of goods available for sale and the number of units available for sale.

Total cost of goods available for sale = 59229

Total units of goods available for sale = 980

Units Cost Mar 1 Beginning inventory 240 12912 Mar 5 purchase 295 17346 Mar 18 purchase 155 9889 Mar 25 purchase 290 19082 Total 980 59229

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