Question

crane distribution markets cds of the performing artist unique. at the beginning of october, crane had in beginning inventory 2,000 of unique’s cds with a unit cost of $5. during october, crane made the following purchases of unique’s cds. oct. 3 2,500 @ $6 oct. 19 3,000 @ $8 oct. 9 3,500 @ $7 oct. 25 4,000 @ $9 during october, 10,900 units were sold. crane uses a periodic inventory system. (a) determine the cost of goods available for sale. cost of goods available for sale $

Explanation:

Step1: Calculate beginning inventory cost

$\text{Beginning Inventory Cost} = 2000 \times 5 = 10000$

Step2: Calculate Oct.3 purchase cost

$\text{Oct.3 Purchase Cost} = 2500 \times 6 = 15000$

Step3: Calculate Oct.9 purchase cost

$\text{Oct.9 Purchase Cost} = 3500 \times 7 = 24500$

Step4: Calculate Oct.19 purchase cost

$\text{Oct.19 Purchase Cost} = 3000 \times 8 = 24000$

Step5: Calculate Oct.25 purchase cost

$\text{Oct.25 Purchase Cost} = 4000 \times 9 = 36000$

Step6: Sum all costs for total

$\text{Cost of Goods Available for Sale} = 10000 + 15000 + 24500 + 24000 + 36000$

Answer:

109500