Question

The following information is taken from the inventory records of the CNB Company for the month of September: 9/7 Beginning inventory 9/1/2021 8,000 units @ $10.00 Purchases: 6,000 units @ $10.70 9/25 9,000 units $12.60 Sales: 9/10 8.000 units 9/29 9,000 units 6,000 units were on hand at the end of September. Required: 1. Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory. 2. Assuming that CNB uses a perpetual inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory. (Round cost per unit to 2 decimal places.) Ending Inventory - Average Cost Average Cost Cost of Goods Available for Sale Cost of # of Goods units Cost Available for Sale 8,000 $ 10.00 $ 80.000 Cost of Goods Sold - Average Cost # of Average Cost of units Cost per Goods sold Unit Sold Unit # of units in ending inventory Average Cost per unit Ending Inventory 7 Beginning Inventory Purchases: 9/ 9/25 Total 6 ,000 9,000 $ 10.70 $ 12.60 64,200 113.400 $ 257,600 17,000 $ 11.20 $190,400 2,000s 11.20 $ 78,400

Answer 1

a) Ending Inventory - Average Average Cost - Periodic Cost of Goods Available for Cost of Goods Sold - Cost of Cost of Average Cost of units Cost per Goods # of units Cost Goods unit Available sold per unit Sold for Sale Beg. Inventory 8,000 $10.00 $80,000 # of units in ending inventory Cost per unit Ending Inventory Purchases: 9/7 9/25 Total 6,000 9,000 23.000 $10.70 $64,200 $12.60 $113,400 $257,600 17,000 $11.20 $190,400 6,000 $11.20 $67,200

Average Cost - Perpetual Goods Purchased b) Cost of Goods Sold Inventory Balance Perpetual Average # of units Cost per # of units Cost per unit I sold | unit Cost of goods sold # of units Cost Inventory per unit Value Beginning Inventory 8,000 $10.00 $80,000 Purchase - september 7 6,000 $10.70 Average cost Sale - september 10 Purchase - september 25 8.000 $10.30 $82,400 9,000 $12.60 8,000 6,000 14.000 6,000 6.000 9,000 15,000 6,000 6,000 $10.00 $80,000 $10.70 $64.200 $10.30 $144,200 $10.30 $61.800 $10.30 $61.800 $12.60 $113,400 $11.68 $175,200 $11.68 $70,080 $11.68 $70,080 Average cost Sale - september 29 Average cost $11.68 9,000 17,000 $105,120 $187,520