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Inventory Costing: Average Cost Filimonov Inc. has the following information related to purchases and sales of one of its inventory items: Assume that the company
Inventory Costing: Average Cost Filimonov Inc. has the following information related to purchases and sales of one of its inventory items:
Assume that the company 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
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Date Descriptiorn Units Purchased at Cost Units Sold at Retail JuneBeginning inventory 200 units @ $10 $2,000 300 units @ $12 = $3,600 9 Purchase 1 14 Sale 1 22 Purchase 2 29 Sale 2 400 units @ $25 250 units @ $14 = $3,500 225 units $25Step by Step Solution
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