Inventory Costing: Average Cost Bordeaux Company has the following information related to purchases and sales of one of its inventory items: Date Description Units Purchased at Cost June 1 Beginning Inventory 150 units @ $10 = $1,500 9 Purchase 1 200 units @ $12 = $2,400 14 Sale 1 22 Purchase 2 29 Sale 2 250 units @ $14 = $3,500 Assume that Bordeaux uses a perpetual inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. (Note: Round per-unit calculations to 4 decimal places and al other numbers to the nearest dollar.) Cost of goods sold 6,453 Cost of ending inventory $ 957 X
Inventory Costing: Average Cost Bordeaux Company has the following information related to purchases and sales of one of its inventory items: Date Description Units Purchased at Cost June 1 Beginning Inventory 150 units @ $10 = $1,500 9 Purchase 1 200 units @ $12 = $2,400 14 Sale 1 22 Purchase 2 29 Sale 2 250 units @ $14 = $3,500 Assume that Bordeaux uses a perpetual inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. (Note: Round per-unit calculations to 4 decimal places and al other numbers to the nearest dollar.) Cost of goods sold 6,453 Cost of ending inventory $ 957 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Inventory Costing: Average Cost
Bordeaux Company has the following information related to purchases
and sales of one of its inventory items:
Date
Description
Units Purchased at Cost
June 1 Beginning Inventory
150 units @ $10 = $1,500
9 Purchase 1
200 units @ $12 = $2,400
14 Sale 1
22 Purchase 2
29 Sale 2
250 units @ $14 = $3,500
Assume that Bordeaux uses a perpetual inventory system.
Required:
Calculate the cost of goods sold and the cost of ending inventory using
the average cost method. (Note: Round per-unit calculations to 4
decimal places and al other numbers to the nearest dollar.)
Cost of goods sold
6,453
Cost of ending inventory $
957 X
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