Question
A company uses a perpetual inventory system. The company's beginning inventory of shoes and the purchases during a month as as follows: Beginning Inventory Jan
A company uses a perpetual inventory system. The company's beginning inventory of shoes and the purchases during a month as as follows:
Beginning Inventory Jan 1: 16 pairs at $10 ea
Purchase Jan 11: 14 pairs @ $12 ea
Purchase Jan 20: 23 pairs at $15 ea
On Jan 14 the company sold 25 units of shoes. The other 28 units remained in inventory at Jan 31.
Question 1: Assuming the company uses the average cost flow assumption what is the cost of goods sold to be recorded on Jan 14 (round to the nearest cent).
cost per unit=total cost available for sale/total units available for sale
328/30=10.9
23*10.9=250.7
Question 2: The total cost of goods available for sale is $673. Assuming average cost flow what would the ending inventory be on Jan 31?
COGS/Total pairs available for sale?
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