Larkspur, Inc. had a beginning inventory of 96 units of Product RST at a cost of $8 per unit. During the year, purchases were: Feb. 20 643 units at $9 Aug. 12 411 units at $11 May 5 480 units at $10 Dec. 8 99 units at $12 Larkspur, Inc. uses a periodic inventory system. Sales totaled 1,450 units. (a) Determine the cost of goods available for sale.

cost of goods available for sale= $17,064

Explanation:

Giving the following information:

Beginning inventory of 96 for $8 per unit.

Purchases:

Feb. 20: 643 units at $9

Aug. 12: 411 units at $11

May 5: 480 units at $10

Dec. 8: 99 units at $12

We need to calculate the cost of goods available for sale:

cost of goods available for sale= 96*8 + 643*9 + 411*11 + 480*10 + 99*12

cost of goods available for sale= $17,064