Wattan company reports beginning inventory of 25 units at $39 each. every week for four weeks it purchases an additional 25 units at respective costs of $40, $41, $44, and $49 per unit for weeks 1 through 4. compute the cost of goods available for sale and the units available for sale for this four-week period. assume that no sales occur during those four weeks.

Inventory= $5,325

Explanation:

Giving the following information:

Wattan Company reports beginning inventory of 25 units at $39 each. Every week for four weeks it purchases an additional 25 units at respective costs of $40, $41, $44, and $49 per unit for weeks 1 through 4.

Inventory= 25*39 + 25* 40 + 25*41 + 25*44 + 25*49= $5,325

Explanation:

The correct value of inventory:

Year end balance $267,670

Add:

Goods purchased on term FOB shipping point $25,600

Goods sold on terms FOB destination $52,170

Less: Goods purchased on terms FOB destination ($43,630)

Correct inventory as on December 31 $301,810