Calculate the Total Number of Units Available for Sale and the Cost

question 59

Short Answer

Calculate the total number of units available for sale and the cost of goods available for sale from the following inventory: $$\begin{array} { l l l } \text { Date } & \text { Units } & \text { Cost per unit } \\\hline \text { Beginning inventory, Jan. 1 } & 600 & \$ 30 \\\text { Purchase, February } 18 & 1,200 & \$ 35 \\\text { Purchase, April } 10 & 1,250 & \$ 40 \\\text { Purchase, August 15 } & 1,700 & \$ 45 \\\text { Purchase, November 6 } & 1,500 & \$ 42\end{array}$$
A)How many total units are available for sale?
B)What is the cost of goods available for sale?

• A)How many total units are available for sale?
• B)What is the cost of goods available for sale?

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Definitions:

Borrow Money

The act of obtaining funds from another party with the promise of repaying the principal amount along with potential interest.

Buy Stocks on Margin

The practice of borrowing money from a broker to purchase stock, using the bought securities as collateral for the loan.

Risk Free Asset

An investment that is expected to return its original value without any loss and with a certain rate of interest; considered to have zero default risk.

Rate of Return

The increase or decrease in the value of an investment during a set time frame, represented as a proportion of the investment's original price.