2.
Average-Cost Method: Periodic Inventory System
Assume the following data with regard to inventory for Vegan Company:
Aug. 1 Inventory 40 units @ $10 per unit $ 400 8 Purchase 50 units @ $11 per unit 550 22 Purchase 35 units @ $12 per unit 420 Goods available for sale 125 units $1,370 Aug. 15 Sale 58 units 28 Sale 25 units Inventory, Aug. 31 42 units
Calculate the cost of ending inventory and cost of goods sold according to the average-cost method under the periodic inventory system. In your calculations round average unit cost to the nearest cent and round your final answers to the nearest dollar.
Average-Cost method
Cost of ending inventory: $ Cost of goods sold: $
2.
Average-Cost Method: Periodic Inventory System
Assume the following data with regard to inventory for Vegan Company:
| Aug. 1 | Inventory | 40 | units @ $10 per unit | $ 400 | ||
| 8 | Purchase | 50 | units @ $11 per unit | 550 | ||
| 22 | Purchase | 35 | units @ $12 per unit | 420 | ||
| Goods available for sale | 125 | units | $1,370 | |||
| Aug. 15 | Sale | 58 | units | |||
| 28 | Sale | 25 | units | |||
| Inventory, Aug. 31 | 42 | units | ||||
Calculate the cost of ending inventory and cost of goods sold according to the average-cost method under the periodic inventory system. In your calculations round average unit cost to the nearest cent and round your final answers to the nearest dollar.
| Average-Cost method | |
| Cost of ending inventory: | $ |
| Cost of goods sold: | $ |
Related questions
7. FIFO Method: Perpetual Inventory System
Assume the following data with regard to inventory for Vegan Company:
| Aug. 1 | Inventory | 40 | units @ $10 per unit | $ 400 | ||
| 8 | Purchase | 50 | units @ $11 per unit | 550 | ||
| 22 | Purchase | 35 | units @ $12 per unit | 420 | ||
| Goods available for sale | 125 | units | $1,370 | |||
| Aug. 15 | Sale | 45 | units | |||
| 28 | Sale | 25 | units | |||
| Inventory, Aug. 31 | 55 | units | ||||
Calculate the cost of ending inventory and cost of goods sold according to the FIFO method under the perpetual inventory system.
| FIFO Method | |
| Cost of ending inventory: | $ |
| Cost of goods sold: | $ |
7. Altira Corporation uses a periodic inventory system. Thefollowing information related to its merchandise inventory duringthe month of August 2016 is available: |
| Aug.1 | Inventory onhandâ2,500 units; cost $6.50 each. | ||
| 8 | Purchased 11,000units for $5.60 each. | ||
| 14 | Sold 8,500 units for$12.10 each. | ||
| 18 | Purchased 6,500units for $5.10 each. | ||
| 25 | Sold 7,500 units for$11.10 each. | ||
| 31 | Inventory onhandâ4,000 units. | ||
| |||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
21. Altira Corporation uses a periodic inventory system. Thefollowing information related to its merchandise inventory duringthe month of August 2016 is available: |
| Aug.1 | Inventory onhandâ2,000 units; cost $6.10 each. |
| 8 | Purchased 10,000units for $5.50 each. |
| 14 | Sold 8,000 units for$12.00 each. |
| 18 | Purchased 6,000units for $5.00 each. |
| 25 | Sold 7,000 units for$11.00 each. |
| 31 | Inventory onhandâ3,000 units. |
| Required: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Determine the inventory balance Altira would report in itsAugust 31, 2016, balance sheet and the cost of goods sold it wouldreport in its August 2016 income statement using each of thefollowing cost flow methods: (Round "Average Cost per Unit"to 2 decimal places.)
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
