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28 July, 08:44

Metlock, Inc. markets CDs of numerous performing artists. At the beginning of March, Metlock had in beginning inventory 2,500 CDs with a unit cost of $8. During March, Metlock made the following purchases of CDs. March 5 1,850 @ $9 March 21 4,800 @ $11 March 13 4,000 @ $10 March 26 1,850 @ $12 During March 11,900 units were sold. Metlock uses a periodic inventory system. Determine the cost of goods available for sale. The cost of goods available for sale

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  1. 28 July, 08:59
    0
    Cost of goods available for sale = $151,650.

    Explanation:

    Opening inventory : (2500*8) = 20000

    Add: Purchases

    March-5: (1850*9) = 16650

    March 21 - (4800*11) = 52800

    March 13 - (4000*10) = 40000

    March 26 - (1850*12) = 22200

    = 131650

    Cost of goods available for sale 151,650
  2. 28 July, 09:02
    0
    Determine the cost of goods available for sale

    Opening Stock (2,500*$8) 20,000

    Add Purchases

    (1,850*$9) 16,650

    (4,800*$11) 52,800

    (4,000*$10) 40,000

    (1,850*$9) 16,650

    Cost of goods available for sale 146,100

    Therefore Cost of goods available for sale is $146,100

    Explanation:

    Periodic Inventory System determined the cost of Inventory at the end of a certain period.

    Cost of Goods available for sale using the periodic inventory system entails accounting for all opening inventory stock and further stock purchases.
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