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Jackson Enterprises markets the CDs for the performing artist Adam Lavine. At th

ID: 2471108 • Letter: J

Question

Jackson Enterprises markets the CDs for the performing artist Adam Lavine. At the beginning of March, Jackson had beginning inventory of 1,500 Lavine CDs with a unit cost of $7. During March, Jackson made the following purchases of Lavine CDs. During March, 12,500 units were sold. Jackson uses a perpetual inventory system. Prepare answers on an Excel spreadsheet using the following templates. Label each answer with the letter in parenthesis. Instruction: Determine the cost of goods available for sale.

Explanation / Answer

COST OF GOODS AVAILABLE FOR SALE

Date

Explanation

Units

Unit Cost

Total Cost

1-Mar

Beginning Inventory

         1,500

7

$          10,500

5-Mar

Purchases

         3,000

8

$          24,000

13-Mar

Purchases

         5,500

9

$          49,500

21-Mar

Purchases

         4,000

10

$          40,000

26-Mar

Purchases

         2,000

11

$          22,000

Total

      16,000

$        146,000

COST OF GOODS AVAILABLE FOR SALE

Date

Explanation

Units

Unit Cost

Total Cost

1-Mar

Beginning Inventory

         1,500

7

$          10,500

5-Mar

Purchases

         3,000

8

$          24,000

13-Mar

Purchases

         5,500

9

$          49,500

21-Mar

Purchases

         4,000

10

$          40,000

26-Mar

Purchases

         2,000

11

$          22,000

Total

      16,000

$        146,000