Natalie is busy establishing both divisions of her business (cookie classes and mixer sales) and completing her business degree. Her goals for the next 11 months are to sell one mixer per month and to give two to three classes per week.

The cost of the fine European mixers is expected to increase. Natalie has just negotiated new terms with Kzinski that include shipping costs in the negotiated purchase price (mixers will be shipped FOB destination).Assumethat Nataliehasdecidedtouseaperiodicinventorysystemandnowmustchooseacostflowassumptionforhermixer inventory.

Thefollowing transactionsoccur in February toMay 2018.

Feb. 2

NataliebuystwodeluxemixersonaccountfromKzinskiSupplyCo.for$1,200($600each),FOB destination,termsn/30.16

Shesells one deluxemixerfor$1,150cash.25

Shepays theamount owed to Kzinski.Mar. 2

ShebuysonedeluxemixeronaccountfromKzinskiSupplyCo.for$618,FOBdestination,terms n/30.30

Natalie sells two deluxemixersfor a total of$2,300cash.31

Shepays theamount owed to Kzinski.Apr. 1

ShebuystwodeluxemixersonaccountfromKzinskiSupply Co.for$1,224($612each),FOB destination,termsn/30.13

Shesells threedeluxe mixersfor a total of $3,450cash.30

Natalie pays the amountsowedto Kzinski.May 4

Shebuysthreedeluxemixersonaccount fromKzinskiSupplyCo.for$1,875($625 each),FOB destination,termsn/30.27

Shesells one deluxemixerfor$1,150cash.

Determinethecostofgoodsavailableforsale.RecallfromChapter5thatattheendofJanuary,Cookie Creationshad threemixers on hand at a costof $595 each.

Cost of goods available for sale