Question

Cornerstone Exercise 6-32 (Algorithmic) Inventory Costing Methods: Periodic Average Cost (Appendix 6B) Bordeaux Company has the following information related to purchases and sales of one of its inventory items: Date Description Units Sold at Retail June 1 Beginning Inventory Units Purchased at Cost 150 units @ $9 = $1,350 200 units @ $12 - $2,400 9 14 22 Purchase 1 Sale 1 Purchase 2 300 units @ $25 250 units @ $14 = $3,500 29 Sale 2 225 units $25 Assume that Bordeaux uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) Cost of goods sold Cost of ending inventory S

Answer 1

	Units	Unit cost	Total cost
June 1	150	9	1350
9	200	12	2400
22	250	14	3500
Total	600		7250
Units sold	525	=300+225
Ending inventory units	75	=600-525
Average cost per unit	12.0833	=7250/600
Cost of goods sold	6344	=525*12.0833
Cost of ending inventory	906	=75*12.0833