Crane Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventory on December 10, 2019, at a cost of $21 per unit. None of this inventory was sold in 2019. Relevant information is as follows:**Ending inventory units**- December 31, 2019: 110 units- December 31, 2020, by purchase date: - December 2, 2020: 110 units - July 20, 2020: 50 units - Total: 160 units**During the year 2020, the following purchases and sales were made:**| Purchases | Sales ||-------------------------------|------------------------|| March 15: 310 units at $25 | April 10: 210 units || July 20: 310 units at $26 | August 20: 310 units || September 4: 210 units at $29 | November 18: 160 units || December 2: 110 units at $32 | December 12: 210 units |The company uses the periodic inventory method.**Instruction:**(a1) Calculate average-cost per unit. *(Round answer to 2 decimal places, e.g., 2.76.)***Average-cost:** _____

Solution: Cost of goods available for sale = (110*$21) + (310*$25 + 310*$26 + 210*$29 + 110*$32) = $2,310 + ($7,750 + $8,060 + $6,090 + $3,520) = $27,730 Units available for sale = 110 + 310 + 310 + 210 +110 = 1050 unitsAverage cost per unit = Cost of goods available for sale / Units available for sale = $27,730 / 1050 = $26.41 per unit

Business

Accounting

Crane Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventor December 10, 2019, at a cost of $ 21 per unit. None of this inventory was sold in 2019. Relevant information is as follows. Ending inventory units December 31, 2019 110 December 31, 2020, by purchase date December 2, 2020 110 July 20, 2020 50 160 During the year 2020, the following purchases and sales were made. Purchases Sales March 15 310 units at $25 April 10 210

Crane Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventor December 10, 2019, at a cost of $ 21 per unit. None of this inventory was sold in 2019. Relevant information is as follows. Ending inventory units December 31, 2019 110 December 31, 2020, by purchase date December 2, 2020 110 July 20, 2020 50 160 During the year 2020, the following purchases and sales were made. Purchases Sales March 15 310 units at $25 April 10 210

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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