Question

Riverbed Company uses a periodic inventory system. For April, when the company sold 600 units, the following information is available.

		Units		Unit Cost		Total Cost
April 1 inventory		270		$30			$ 8,100
April 15 purchase		440		36			15,840
April 23 purchase		290		39			11,310
		1,000					$35,250

Calculate weighted average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)

Weighted average cost per unit

$35.25

Compute the April 30 inventory and the April cost of goods sold using the average-cost method. (Round answers to 0 decimal places, e.g. 2,760.)

Ending Inventory: $

Cost of goods sold: $

Answer 1

Answer:

Weighted average cost per unit

$35.25

Inventory               [Refer working note 1]	$14,100
Cost of Goods Sold    [Refer working note 2]	$21,150
Working note 1 - Computation of Ending inventory
a. Total number of units available for sale	1000
b. Number of units sold	600
c. Number of units in ending inventory    [a - b]	400
d. Average cost per unit	$35.25
Ending inventory (in dollars)                [c x d]	14,100
Working note 2 - Computation of Cost of Goods Sold
a. Number of units sold	600
b. Average cost per unit	$35.25
Cost of Goods Sold        (a x b)	21,150