Question
Periodic System Calculating Ending Inventory and Cost of Sales using Average Cost The following information is available for Water Inc. Date Units Unit Cost January
Periodic System Calculating Ending Inventory and Cost of Sales using Average Cost
The following information is available for Water Inc.
| Date | Units | Unit Cost |
|---|---|---|
| January 1, 2020 (beginning inventory) | 220 | $50.00 |
| Purchases: January 10, 2020 | 165 | 52.00 |
| January 15, 2020 | 330 | 52.50 |
| January 30, 2020 | 220 | 55.00 |
The company maintains a periodic inventory system. A physical inventory count shows 275 units in stock on January 31. What is (a) ending inventory on January 31, and (b) cost of goods sold for January, using the average cost method?
- Round unit cost used in your calculation to two digits after the decimal. (For example, use a rate of $1.42 for $1.424 or use a rate of $1.43 for $1.425.)
- Round final answers to the nearest whole dollar.
| a. Ending inventory on January 31 | |
| b. Cost of goods sold for January |
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Comparative International Accounting Subsequent Edition
Authors: Christopher Nobes, R. H. Parker
5th Edition
0137364636, 9780137364633
