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Average cost, I dont know why it isn't 1097? Please help Cornerstone Exercise 6-24 (Algorithmic) Inventory Costing: Average Cost Bordeaux Company has the following information
Average cost, I dont know why it isn't 1097? Please help
Cornerstone Exercise 6-24 (Algorithmic) Inventory Costing: Average Cost Bordeaux Company has the following information related to purchases and sales of one of its inventory items Date Description Units Purchased at Cost 150 units@ $10 $1,500 200 units $12 $2,400 Units Sold at Retail June 1 Beginning Inventoy 9 Purchase 1 14 Sale1 22 Purchase 2 29 Sale 2 300 units @ $25 250 units@ $14 $3,500 219 units@ $25 Assume that Bordeaux uses a perpetual inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. (Note: Round per-unit calculations to two decimal places.) Cost of goods sold Cost of ending inventory 6,303 1,097X Feedback Check My Work For cost ot goods sold and cost of ending inventory using the average cost method, apply the following steps: Step 1: Calculate the cost of goods available for sale immediately prior to the sale transaction. Step 2: Apply the Inventory costing method, recognizing that under average cost, the cost of goods available for sale is allocated between ending inventory and cost of goods sold, based on a weighted average cost of the goods available for sale (cost of goods available for sale units available for sale) Step 3. Repeat the first two steps for all inventory transactions during the period
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