USING THE AVERAGE COST FORMULA

Pronghorn Inc. uses a perpetual inventory system. Its records show the following for the month of May. Unit Cost Total Cost Date Units 1 Explanation Inventory Purchase 30 $9 May May May $270 15 24 10 240 18 Sale (43) 36 May 24 Purchase 11 396 Total 90 $906 Calculate the cost of goods sold for May and the ending inventory at May 31 using the average cost formula. (For average, use 3 decimal places, e.g. 15.235 in your calculations and round final answers to 3 decimal places, e.g 5.255.) Cost of goods sold $ Ending Inventory $