Question Completion:
Waterway Company's records show the following inventory activity:
Inventory, Jan. 1 Units 10,000 Cost $9.20
Purchase, June 18 Units 9,000 Cost $8.00
Nov.8 Units 6,000 Cost$7.00
Answer:
Waterway Company
The cost of goods available for sale is:
$206,000.
Explanation:
a) Data and Calculations:
Ending inventory = 4,000 units
Selling price of units = $13 each
Inventory Records:
Inventory, Jan. 1 10,000 Cost $9.20 $92,000
Purchase, June 18 9,000 Cost $8.00 72,000
Purchase, Nov.8 6,000 Cost$7.00 42,000
Cost of goods available for sale = $206,000
b) The cost of goods available for sale is the value of beginning inventory and all purchases during the period. It is from this total that costs are allocated to the cost of goods sold and the ending inventory.
