Wattan Company reports beginning inventory of 15 units at $35 each. Every week for four weeks it purchases an additional 15 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.

Cost of goods available for sale = $2,895

units available for sale = 75 units      

Explanation:

To simplify the calculations required, we will group the entries into a tabular form, and compute the totals from the table:

Inventory                No. of units             cost per unit($)           overall cost($)

Beginning                      15                                   35                                  525

week 1                            15                                   36                                  540

week 2                           15                                   37                                  555

week 3                           15                                   40                                  600

week 4                           15                                   45                                  675

Total                               75                                                                        2,895

Therefore:

Total Number number of units available for sale = 75 units

Total cost of goods available for sale = $2,895

answer; no individual buyer or seller has any significant impact on the market price;

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