Attan Company reports beginning inventory of 16 units at $35 each. Every week for four weeks it purchases an additional 16 units at respective costs of $36, $37, $40, and $45 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.

Part 1  The cost of goods available for sale $3,088

Part 2 The units available for sale 80 units

Explanation:

Part 1  The cost of goods available for sale

Cost of goods available for sale = Opening Inventory + Purchase of Further Inventory

Calculation of Cost of goods Available for Sale :

Opening Inventory: 16 units ×$35      560

Add Purchases:

Week 1: 16 units ×$36                          576

Week 2: 16 units ×$37                         592

Week 3: 16 units ×$40                         640

Week 4: 16 units ×$45                         720

Cost of goods Available for Sale      3,088

Part 2 The units available for sale

Units available for sale = Opening Units + Purchase of Further Units

Opening units: 16 units

Add Purchases:

Week 1: 16 units

Week 2: 16 units

Week 3: 16 units

Week 4: 16 units

Units  Available for Sale: 80 units

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