Chapter 18, Problem 1ES

To determine

To calculate: The cost of goods available for sale using the following table,

Date of purchase	Unit purchased	Cost per unit
Beginning inventory	182	$21
August 20	78	$27
September 12	39	$28
October 2	52	$21
Cost of goods available for sale

Answer to Problem 1ES

Solution:

The total cost of goods available for sale is $8112.

Explanation of Solution

Given information:

The inventory table,

Date of purchase	Unit purchased	Cost per unit
Beginning inventory	182	$21
August 20	78	$27
September 12	39	$28
October 2	52	$21
Cost of goods available for sale

Formula used:

Use the following formulae,

$\text{Cost of goods available for sale}=\text{number of unit purchased }\times \text{cost per unit}$

Calculation:

Consider the inventory table,

Date of purchase	Unit purchased	Cost per unit
Beginning inventory	182	$21
August 20	78	$27
September 12	39	$28
October 2	52	$21
Cost of goods available for sale

Now, using the formula to find total cost of goods available for sale,

$\begin{array}{c}\text{Cost of goods available for sale}=\text{number of unit purchased }\times \text{cost per unit}\\ \text{=182}\left(\$21\right)+78\left(\$27\right)+39\left(\$28\right)+52\left(\$21\right)\\ =\$3822+\$2106+\$1092+\$1092\\ =\$8112\end{array}$

So, total cost of goods available for sale is $8112.