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A company began January with 7,000 units of its principal product. The cost of each unit is $6. Inventory transactions for the month of January
A company began January with 7,000 units of its principal product. The cost of each unit is $6. Inventory transactions for the month of January are as follows:
Date of Purchase | Purchases | ||
---|---|---|---|
Units | Unit Cost* | Total Cost | |
January 10 | 6,000 | $ 7 | $ 42,000 |
January 18 | 7,000 | 8 | 56,000 |
Totals | 13,000 | $ 98,000 |
* Includes purchase price and cost of freight.
Sales | |
Date of Sale | Units |
---|---|
January 5 | 3,000 |
January 12 | 3,000 |
January 20 | 4,000 |
Total | 10,000 |
10,000 units were on hand at the end of the month.
5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system.
Note: Round average cost per unit to 4 decimal places. Enter sales with a negative sign.
\begin{tabular}{|l|l|l|l|l|l|l|} \hline \multirow{2}{*}{ Perpetual Average } & \multicolumn{3}{|c|}{ Inventory on hand } & \multicolumn{3}{c|}{ Cost of Goods Sold } \\ \cline { 2 - 7 } & \multicolumn{1}{|c|}{Numberofunits} & Costperunit & InventoryValue & Numberofunitssold & AverageCostperunit & CostofGoodsSold \\ \hline Beginning Inventory & & & & & \\ \hline Sale - January 5 & & & & & \\ \hline Subtotal Average Cost & & & & & & \\ \hline Purchase - January 10 & & & & & & \\ \hline Subtotal Average Cost & & & & & & \\ \hline Sale - January 12 & & & & & & \\ \hline Subtotal Average Cost & & & & & & \\ \hline Purchase - January 18 & & & & & & \\ \hline Subtotal Average Cost & & & & & & \\ \hline Sale - January 20 & & & & & & \\ \hline Total & & & & & & \\ \hline \end{tabular}Step by Step Solution
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