Chapter 8, Problem 8.16E

Average cost method; periodic and perpetual systems

• LO8–1, LO8–4

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

Beginning inventory, 9/1/2018	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. Repeat requirement 1 assuming that the company uses a perpetual inventory system.