Curfew Co. uses the periodic inventory method. They started the year with beginning inventory of 120 units at which had a unit cost of $3. All units during the year were sold at $10 each. The following inventory information was also available for the year ended December 31, 2019:

Curfew Co. uses the periodic inventory method. They started the year with beginning inventory of 120 units at which had a unit cost of $3. All units during the year were sold at $10 each. The following inventory information was also available for the year ended December 31, 2019:

Name: Using the average cost method, calculate the cost of goods available f
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Description: Using the average cost method, calculate the cost of goods available for sale, the average cost per unit and the value of the ending inventory Curfew Co. uses the periodic inventory method. They started the year with beginning inventory of 120 units

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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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Using the average cost method, calculate the cost of goods available for sale, the average cost per unit and the value of the ending inventory

Curfew Co. uses the periodic inventory method. They started the year with beginning inventory of 120 units at which had a unit cost
of $3. All units during the year were sold at $10 each. The following inventory information was also available for the
December 31, 2019:
year
ended
Units Unit Cost
15-JanSales
70
20-JanPurchase
200
$4
20-MaySales
150
25-JulPurchase
100
$5
21-SepSales
150
20-OctPurchase
250
$6

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