Question

On January 1, Allied Corporation has $2,000 in beginning inventory, which is comprised of 1,000 units purchased at a cost of $2 per unit.  Allied has the following inventory transactions during the month:

1/5       Purchase of 2,000 units with cash at a cost of $2.50 per unit.

1/8       Purchase of 600 units on credit at a cost of $3 per unit.

1/31     Sale of 2800 units on credit to ABC Company at a selling price of $6 per unit.

What is the amount of goods (units) available for sale?

Answer 1

Goods available for sale $8,800

Working

	Units	Cost per unit	value
Beginning Balance	1000	$                     2.00	$ 2,000
Purchases
	2000	$                     2.50	$ 5,000
	600	$                     3.00	$ 1,800
Total	3600		$ 8,800