Purchases and sales during a recent period for Coleman, Inc. are shown below:1. Beginning inventory was 100 units at P1 each. Given this information, what is the cost per unit available for sale during the year when using the average cost method (rounded to the nearest centavo)? Purchases During the PeriodSales During the Period1st Purchase500 unitsP21st Sale600 unitsP72nd Purchase1,000 unitsP32nd Sale750 unitsP83rd Purchase500 unitsP43rd Sale500 unitsP94th Purchase500 unitSP54th Sale500 unitsP102,500 units2,350 units

Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…

Purchases During the Period Sales During the Period 1st Purchase 500 units P2 1st Sale 600 units P7 2nd Purchase 1,000 units 500 unitS P3 2nd Sale 750 units P8 3rd Purchase P4 3rd Sale 500 unitS P9 4th Purchase 500 unitS P5 4th Sale 500 units P10 2,500 units 2,350 units

Purchases During the Period Sales During the Period 1st Purchase 500 units P2 1st Sale 600 units P7 2nd Purchase 1,000 units 500 unitS P3 2nd Sale 750 units P8 3rd Purchase P4 3rd Sale 500 unitS P9 4th Purchase 500 unitS P5 4th Sale 500 units P10 2,500 units 2,350 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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Question

Purchases and sales during a recent period for Coleman, Inc. are shown below:

1. Beginning inventory was 100 units at P1 each. Given this information, what is the cost per unit available for sale during the year when using the average cost method (rounded to the nearest centavo)?

Purchases During the Period
Sales During the Period
1st Purchase
500 units
P2
1st Sale
600 units
P7
2nd Purchase
1,000 units
P3
2nd Sale
750 units
P8
3rd Purchase
500 units
P4
3rd Sale
500 units
P9
4th Purchase
500 unitS
P5
4th Sale
500 units
P10
2,500 units
2,350 units

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