Apple River Inc.'s inventory for the month of November was as follows:

Instructions
(a) Calculate the ending inventory and cost of goods sold using the average cost formula in
(1) A perpetual inventory system, and
(2) A periodic inventory system. (Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.)
(b) Compare your results for items 1 and 2 of part (a), commenting specifically on any differences or similarities between the two inventory systems.

Transcribed Image Text:

Date Explanation Units Unit Cost Nov. 1 Beginning inventory100$40 42 4 Purchase 11 Sale 16 Purchase 20 Sale 27 Purchase 500 (450) 750 (8oo) 600 46