Question

The following information is taken from the inventory records of the CNB Company for the month of September: 1.5 points Beginning inventory, 9/1/2021 4,800 units @ $10.80 Purchases: 9/7 2. eee units $10.30 9/25 8,800 units @ $19.80 Sales: 9/1e 4,800 units 9/29 4. eee units 6,eee units were on hand at the end of September. Requlred: 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 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. (Enter inventory reductions for sales with a minus sign. Round cost per unit to 2 decimal places.) Inventory on hand Perpetual Average #of Cost per unit # of units Cost of Goods Sold Average Cost of Cost per Goods Sold unit Inventory Value units sold S $ 10.00 10.30 10.10 10.10 Beginning Inventory Purchase - September 7 Subtotal Average Cost Sale - September 10 Subtotal Average Cost Purchase - September 25 Subtotal Average Cost Sale - September 29 Total 4,000 2.000 6.000 4,000 X 10.000 8.000 18.000 4,000 X 22,000 40,000 20,600 60,600 40,400 101,000 86,400 187,400 42.280 229,680 10.80 10.57 x 10.57 (4.000) (4.000) (42.280) (42.280) $ $ < Required 1 Required 2 >

Answer 1

	PERIODIC INVENTORY SYSTEM
	AVERAGE COST METHOD
			COST OF GOODS AVAILABLE FOR SALE			COST OF GOODS SOLD
	Date	Particulars	Units	Rate	Total	Units	Rate	Total
	Sept, 01	Beginning inventory	4000	$                        10.00	$                        40,000
	Purchases
	Sept, 07	Purchases	2000	$                        10.30	$                        20,600
	Sept, 25	Purchases	8000	$                        10.80	$                        86,400
		Goods Avaiable for sold	14000	$                        10.50	$                    1,47,000
		Sales (4000 units + 4000 units)	-8000	$                        10.50	$                      -84,000	8000	$             10.50	$           84,000
		TOTAL	6000		$63,000	8000		$84,000
		ANSWER :
		Cost of Goods Sold	$84,000
		Ending inventory	$63,000
	PERPETUAL INVENTORY SYSTEM
	AVERAGE COST METHOD
			INVENTORY ON HAND			COST OF GOODS SOLD
	Date	Particulars	Units	Rate	Total	Units	Rate	Total
	Sept, 01	Beginning inventory	4000	$                        10.00	$                        40,000
	Sept, 09	Purchases	2000	$                        10.30	$                        20,600
		Subtotal Average Costs	6000	$                        10.10	$                        60,600
	Sept, 10	Sales	-4000	$                        10.10	$                      -40,400	4000	$             10.10	$40,400
		Subtotal Average Costs	2000	$                        10.10	$                        20,200
	Sept, 25	Purchases	8000	$                        10.80	$                        86,400
		Subtotal Average Costs	10000	$                        10.66	$1,06,600
	Sept, 29	Sales	-4000	$                        10.66	$                      -42,640	4000	$             10.66	$42,640
		TOTALS	6,000	$                        10.66	$63,960	8,000		$83,040
		ANSWER :
		Cost of Goods Sold	$83,040
		Ending inventory	$63,960