Winganon Company began 2020 with 6,500 units of its principal product. The cost of each unit is $8.25. Merchandise transactions for the month of January 2020 are as follows:

Purchases

Date of Purchase Units Unit Cost Total Cost

Jan. 7 9,000 $ 8 $ 72,000

Jan. 21 10,000 $ 9 $ 90,000

Totals 19,000 $ 162,000

Includes purchase price and cost of freight.

Sales

Date of Sale Units

Jan. 2 6,000

Jan. 13 9,000

Jan. 25 8,500

Total 23,500

required:

compute the number and total cost of unit available for sale in the year 2020?

25,500 units

Cost of goods available for sale is $215,625.00

Explanation:

The available for sale units in the year is the sum of opening stock of inventory and purchases made in the course of the year as spelt below:

Quantity Price per unit $ total value $

Opening stock 6,500 8.25 53,625.00

Purchases (Jan7) 9,000 8.00 72,000.00

Purchases (Jan 21) 10,000 9.00 90,000.00

Total 25,500 215,625.00

The total number of goods available for sale is 25,500 units

The total cost of goods available for sale is $215,625

The cost of goods sold would then be the costs of goods available for sale less the value of closing stock of inventory