Question

Brief Exercise 8-4 Sweet Company uses a periodic inventory system. For April, when the company sold 650 units, the following information is available. Units Unit Cost Total Cost April 1 inventory 310 $34 $ 10,540 April 15 purchase 420 41 17,220 April 23 purchase 270 44 11,880 1,000 $39,640

Calculate weighted average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Weighted average cost per unit $ LINK TO TEXT

Compute the April 30 inventory and the April cost of goods sold using the average-cost method. (Round answers to 0 decimal places, e.g. 2,760.) Ending inventory $ Cost of goods sold $

Answer 1

Answer 1 Weighted average cost per unit = $39.64 per unit

Calculated as

Weighted average cost per unit = $39640/1000 = $39.64

Answer 2

Ending Inventory = $13874

Cost of Goods sold = $25766

Calculated as

Ending Inventory = 350  x $39.64 = $13874

Cost of Goods sold = 650 x 39.64 = $25766

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