Question

CengageNUW2 Unir now.com/m/takeAssignment/takeAssignmentMain doinvokersassignments&takeAssignmentSessionLocatoreassignment talteenprogress=false Cornerstone Exercise 6-32 Inventory Costing Methods: Periodic Average Cost (Appendix 6B) Filimonov Inc. has the following information related to purchases and sales of one of its inventory items: Date Description Units Purchased at Cost Units Sold at Retail June 1 Beginning Inventory 200 units 510 52.000 9 Purchase 1 300 units $12 = $3,600 14 Sale 1 400 units @ $25 22 Purchase 2 250 units $14 $3.500 29 Sale 2 225 units $25 Assume that the company uses a periodo 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

Answer 1

Answer

Cost of goods sold	$    7,583
Cost of ending inventory	$    1,517

Calculated as following

Weighed Average method
Date	Units In		Unit Cost		Total
1-Jun	200	x	$10.00	=	$2,000
9-Jan	300	x	12	=	$3,600
22-Jan	250	x	14	=	$3,500
	750				$9,100
Ending Inventory Valuation
	AMOUNT		QUANTITY		RATE
Weighted Average	$    9,100	/	750	=	$ 12.1333
	Units		Rate		Amount
Ending Inventory	125	x	$ 12.1333	=	$      1,517
	Units		Rate		Amount
Cost of Goods Sold	625	x	$    12.133	=	$      7,583
Cost of goods sold	$    7,583
Cost of ending inventory	$    1,517

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