Kk. (Appendix 6B) Inventory Costing Methods: Periodic Average CostFilimonov Inc. has the following information related to purchases and sales of one of itsinventory items:DateJune 191422DescriptionBeginning InventoryPurchase 1Sale 1Purchase 229 Sale 2Units Purchased at Cost150 units @ $15 =$2,250200 units @ $12 = $2,400250 units @ $14 = $3,500Assume that Filimonov uses a periodic inventory system.Units Sold at Retail300 units @ $25225 units @ $25Required:Calculate the cost of goods sold and the cost of ending inventory using the average cost method.(Note: Use four decimal places for per-unit calculations and round all other numbers tothe nearest dollar.)Cost of goods soldCost of ending inventory Inventory ErrorsHaywood Inc. reported the following information for Year 1:Beginning inventory$25,000Ending inventory40,000Sales revenue1,000,000Cost of goods sold620,000A physical count of inventory at the end of the year showed that ending inventory was actually$65,000.Required:1. What is the correct cost of goods sold and gross profit for Year 1?Cost of goods soldGross profit$2. Assuming the error was not corrected, what is the effect on the balance sheet at December31, Year 1? At December 31, Year 2?December 31, Year 1December 31, Year 2

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Description: Kk. (Appendix 6B) Inventory Costing Methods: Periodic Average CostFilimonov Inc. has the following information related to purchases and sales of one of itsinventory items:DateJune 191422DescriptionBeginning InventoryPurchase 1Sale 1Purchase 229 Sale