The following information is taken from the inventory records of the CNB Company for the month of September: Beginning inventory, 9/1/20215,000units @ $10.00Purchases:9/73,000units @ $10.409/258,000units @ $10.75Sales:9/104,000units9/295,000units7,000 units were on hand at the end of September. Required:1. Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory.2. Assuming that CNB uses a perpetual inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory. Cost of Goods Available for SaleCost of Goods Sold - Average CostCost of GoodsAvailable forSaleAverageCost perUnit# of unitsin endinginventoryEnding Inventory - Average CostAverageCost perunitAverage CostUnitCost# of unitssoldEndingInventoryCost of# of unitsGoods SoldBeginning Inventory5,000 $ 10.00 $50,000Purchases:9173,000 $ 10.4031,2009/258,000 $ 10.7586,000Total16,000167,200 Inventory on handCost of Goods SoldPerpetual AverageInventory # of unitsValueCost ofCost perunitAverageCost per unit Goods Sold# of unitssoldBeginning InventoryPurchase - September 7Subtotal Average CostSale - September 10Subtotal Average CostPurchase - September 25Subtotal Average CostSale - September 29Total

Name: The following information is taken from the inventory records of the C
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Description: The following information is taken from the inventory records of the CNB Company for the month of September: Beginning inventory, 9/1/20215,000units @ $10.00Purchases:9/73,000units @ $10.409/258,000units @ $10.75Sales:9/104,000units9/295,000units7

As per periodic inventory system, inventory records are not updated every transaction, they are…

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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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The following information is taken from the inventory records of the CNB Company for the month of September:


Beginning inventory, 9/1/2021	5,000	units @ $10.00
Purchases:
9/7	3,000	units @ $10.40
9/25	8,000	units @ $10.75
Sales:
9/10	4,000	units
9/29	5,000	units
7,000 units were on hand at the end of September.

Required:
1. Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory.
2. Assuming that CNB uses a perpetual inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory.

Cost of Goods Available for Sale
Cost of Goods Sold - Average Cost
Cost of Goods
Available for
Sale
Average
Cost per
Unit
# of units
in ending
inventory
Ending Inventory - Average Cost
Average
Cost per
unit
Average Cost
Unit
Cost
# of units
sold
Ending
Inventory
Cost of
# of units
Goods Sold
Beginning Inventory
5,000 $ 10.00 $
50,000
Purchases:
917
3,000 $ 10.40
31,200
9/25
8,000 $ 10.75
86,000
Total
16,000
167,200

Inventory on hand
Cost of Goods Sold
Perpetual Average
Inventory # of units
Value
Cost of
Cost per
unit
Average
Cost per unit Goods Sold
# of units
sold
Beginning Inventory
Purchase - September 7
Subtotal Average Cost
Sale - September 10
Subtotal Average Cost
Purchase - September 25
Subtotal Average Cost
Sale - September 29
Total

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