Question

Aloha Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. (For specific identification, the May 9 sale consisted of 80 units from beginning inventory and 100 units from the May 6 purchase; the May 30 sale consisted of 200 units from the May 6 purchase and 100 units from the May 25 purchase.)

Date	Activities	Units acquired at cost	Units sold at retail
May 1	Beginning inventory	150 units @ \(300.00 per unit
May 6	Purchase	350 units @ \)350.00 per unit
May 9	Sales		180 units @ \(1,200.00 per unit
May 17	Purchase	80 units @ \)450.00 per unit
May 25	Purchase	100 units @ \(458.00 per unit
May 30	Sales		300 units @ \)1,400.00 per unit
		680 units	480 units

Required

1. Compute cost of goods available for sale and the number of units available for sale.

Short answer

Units Available for sale:680 units.

Cost of goods available for sale:$249,300.

Step-by-step solution

Definition of Sales Price

Sales price refers to the money that will be charged to the customer against the acquisition of the product offered by the company.

Cost of goods available for sale and number of units available for sale

Date	Units	X	Per unit cost	=	Total cost
May 1	150	X	$300	=	$45,000
May 6	350	X	$350	=	122,500
May 17	80	X	$450	=	36,000
May 25	100	X	$458	=	45,800
Total	680				$249,300