Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December 31, the accounting records for the most popular item in inventory showed the following: Transactions Units Unit Cost Beginning inventory, January 1 500 $5.00 Transactions during the year: a. Purchase, January 30 400 4.40 b. Purchase, May 1 560 6.00 c. Sale ($7 each) (260) d. Sale ($7 each) (800) Required: a. Compute the amount of goods available for sale. b.
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a. To compute the amount of goods available for sale, we need to add the beginning inventory and the purchases made during the year.
Beginning inventory: 500 units
Purchase on January 30: 400 units
Purchase on May 1: 560 units
Total goods available for sale = Beginning inventory + Purchases
= 500 units + 400 units + 560 units
= 1,460 units
b. The question is cut off and incomplete. Please provide the complete question so that I can assist you further.
a. To compute the amount of goods available for sale, we need to add the beginning inventory to the purchases made throughout the year.
Given information:
Beginning inventory, January 1: 500 units
Purchase, January 30: 400 units
Purchase, May 1: 560 units
Total goods available for sale = Beginning inventory + Purchases
Total goods available for sale = 500 units + 400 units + 560 units
Total goods available for sale = 1,460 units
Therefore, the amount of goods available for sale is 1,460 units.
b. To compute the ending inventory, we need to subtract the units sold from the goods available for sale.
Given information:
Sale on an unspecified date: (260) units
Sale on an unspecified date: (800) units
Ending inventory = Goods available for sale - Units sold
Ending inventory = 1,460 units - (260 units + 800 units)
Ending inventory = 1,460 units - 1,060 units
Ending inventory = 400 units
Therefore, the ending inventory is 400 units.
To determine the amount of goods available for sale under the periodic inventory system, we need to calculate the total units of inventory available throughout the year.
Step 1: Calculate the units of inventory available from the beginning inventory:
Beginning inventory: 500 units
Step 2: Calculate the units of inventory available from each purchase transaction:
a. Purchase on January 30: 400 units
b. Purchase on May 1: 560 units
Step 3: Add up the units of inventory available from each purchase transaction:
Total units from purchases: 400 units + 560 units = 960 units
Step 4: Calculate the units of inventory sold:
c. Sale on an unspecified date: 260 units
d. Sale on an unspecified date: 800 units
Total units sold: 260 units + 800 units = 1,060 units
Step 5: Calculate the amount of goods available for sale:
Goods available for sale = Beginning inventory + Total units from purchases
= 500 units + 960 units
= 1,460 units
Therefore, the amount of goods available for sale is 1,460 units.