Question (3)

Britt Company uses the perpetual inventory system and the average cost method. The following information is available for the month of May:

May 1 Beginning inventory 200 units @ $10

10 Purchase 300 units @ $15

12 Purchase 300 units @ $16.5

15 Sales 400 units

18 Purchase 500 units @ $18

21 Sales 500 units

30 Purchase 100 units @ $19.5

Instructions

Prepare a schedule to show cost of goods sold and the value of the ending inventory for the month of May.