Auto Dealers Incorporated sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID number. At the beginning of 2024, Auto Dealers had three cars in inventory, as follows: Car ID 203 207 210 Cost $ 87,000 87,000 90,000 During 2024, each of the three autos sold for $117,000. Additional purchases (listed in chronological order) and sales for the year were as follows: Car ID Cost Selling Price 211 $ 87,000 $ 117,000 212 213 87,000 88,500 120,000 not sold 214 90,000 123,000 215 93,000 127,500 216 91,500 not sold 217 96,000 132,000 218 93,300 133,500 219 99,000 not sold . Calculate ending inventory and cost of goods sold assuming the average cost method and a periodic inventory system. Average Cost Method Periodic Ending inventory Cost of goods sold

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Auto Dealers Incorporated sells a handmade automobile as its only product. Each automobile is identical; however, they
can be distinguished by their unique ID number. At the beginning of 2024, Auto Dealers had three cars in inventory, as
follows:
Car ID
203
207
210
Cost
$ 87,000
87,000
90,000
During 2024, each of the three autos sold for $117,000. Additional purchases (listed in chronological order) and sales for
the year were as follows:
Car ID
Cost
Selling Price
211
$ 87,000
$ 117,000
212
213
87,000
88,500
120,000
not sold
214
90,000
123,000
215
93,000
127,500
216
91,500
not sold
217
96,000
132,000
218
93,300
133,500
219
99,000
not sold
. Calculate ending inventory and cost of goods sold assuming the average cost method and a periodic inventory system.
Average Cost
Method Periodic
Ending inventory
Cost of goods sold
Transcribed Image Text:Auto Dealers Incorporated sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID number. At the beginning of 2024, Auto Dealers had three cars in inventory, as follows: Car ID 203 207 210 Cost $ 87,000 87,000 90,000 During 2024, each of the three autos sold for $117,000. Additional purchases (listed in chronological order) and sales for the year were as follows: Car ID Cost Selling Price 211 $ 87,000 $ 117,000 212 213 87,000 88,500 120,000 not sold 214 90,000 123,000 215 93,000 127,500 216 91,500 not sold 217 96,000 132,000 218 93,300 133,500 219 99,000 not sold . Calculate ending inventory and cost of goods sold assuming the average cost method and a periodic inventory system. Average Cost Method Periodic Ending inventory Cost of goods sold
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