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

Question

Cloe

Business

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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Answers (2)

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Reese Daniel · Answer 1

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

Koen Odonnell · Answer 2

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.