To calculate the cost of goods available for sale, we sum the costs associated with the beginning inventory and all purchases made during the period. Let's break it down step-by-step.
1. Initial Inventory
- Units: 150
- Unit Cost: [tex]$6
- Total Cost: \(150 \times 6 = \$[/tex] 900\)
2. First Purchase on June 12
- Units: 450
- Unit Cost: [tex]$7
- Total Cost: \(450 \times 7 = \$[/tex] 3150\)
3. Second Purchase on June 23
- Units: 380
- Unit Cost: [tex]$8
- Total Cost: \(380 \times 8 = \$[/tex] 3040\)
Next, we add up all these costs to find the total cost of goods available for sale:
[tex]\[ \text{Total Cost of Goods Available for Sale} = \$ 900 + \$ 3150 + \$ 3040 = \$ 7090 \][/tex]
So, the cost of goods available for sale is \$7090.
