Question

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. (For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.) Date Activities Units Acquired at Cost.

Date	Activities	Units acquired at cost	Units sold at retail
March 1	Beginning inventory	100 units @ \(50.00 per unit
March 5	Purchase	400 units @ \)55.00 per unit
March 9	Sales		420 units @ \(85.00 per unit
March 18	Purchase	120 units @ \)60.00 per unit
March 25	Purchase	200 units @ \(62.00 per unit
March 29	Sales		160 units @ \)95.00 per unit
	Total	820 units	580 units

Required

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

Short answer

Total units available for sale:820 units.

The total cost of goods available for sale:$46,600.

Step-by-step solution

Definition of Cost of Goods Available for Sale

The cost of goods available for sale can be defined as the total amount of units available with the business entity for re-selling. It includes all merchandise purchased and beginning inventory.

Cost of goods and units available for sale

Particular	Units	X	Per unit cost	=	Total cost
March 1	100	X	$50	=	$5,000
March 5	400	X	$55	=	22,000
March 18	120	X	$60	=	7,200
March 25	200	X	$62	=	12,400
Total	820				$46,600