The following information is taken from the inventory records of the CNB Company for the month of September: Beginning inventory, 9/1/2024 7,500 units @ $10.00 Purchases: 4,500 units @ $10.40 12,000 units @ $11.75 9/7 9/25 Sales: 9/10 4,000 units 9/29 6,000 units 14,000 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.
The following information is taken from the inventory records of the CNB Company for the month of September: Beginning inventory, 9/1/2024 7,500 units @ $10.00 Purchases: 4,500 units @ $10.40 12,000 units @ $11.75 9/7 9/25 Sales: 9/10 4,000 units 9/29 6,000 units 14,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information is taken from the inventory records of the CNB Company for the month of September:
Beginning inventory, 9/1/2024
Purchases:
9/7
9/25
Sales:
7,500 units @ $10.00
4,500 units@ $10.40
12,000 units @ $11.75
9/10
9/29
4,000 units
6,000 units
14,000 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.
Transcribed Image Text:Required 1 Required 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.
Note: Enter inventory reductions for sales with a minus sign. Round "Average Cost per Unit" to 2 decimal places.
Perpetual Average
Beginning Inventory
Purchase - September 7
Subtotal Average Cost
Sale - September 10
Subtotal Average Cost
Purchase - September 25
Subtotal Average Cost
Sale - September 29
Total
Number of
units
Inventory on hand
Cost per
unit
7,500
4,500
12,000
8,000 x
20,000
12,000 ✓
32,000
14,000 X
46,000
$ 10.00
Inventory
Value
75,000
10.40✔
46,800
10.15 ✓
121,800
10.15
81,200
10.15✓
203,000
11.75 ✔
141,000
11.11 ✓
344,000
11.11✔
155,540
53.41 $ 499,540
$
Number
of units
sold
(14,000)
(14,000)
Cost of Goods Sold
Average
Cost per
unit
11.11
Cost of
Goods Sold
(155,540)
$ (155,540)
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