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)	200	$50.00
Purchases: January 10, 2020	150	52.00
January 15, 2020	300	52.50
January 30, 2020	200	55.00

The company maintains a periodic inventory system. A physical inventory count shows 250 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	Answer
b. Cost of goods sold for January	Answer