Question

Shown below is activity for one of the products of Denver Office Equipment:

January 1 balance, 680 units @ $55 per unit $37,400
Purchases:
January 10:	680 units @ $60 per unit
January 20:	1,190 units @ $62 per unit
Sales:
January 12:	850 units
January 28:	820 units

Required:

Compute the January 31 ending inventory and cost of goods sold for January, assuming Denver uses average cost and a perpetual inventory system. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

Answer 1

answers ending inventory january 31 53372 cost of goods sold january 31 98608 explanation AVERAGE cost- pepetual cost of goods available for sale cost of goods sold date units unit price total units unit price total beginning Jan-01 inventory 680 55 37400 jan ,10 purchases 680 60 40800 ending inventory units unit price total 55 60 | 850 57.50 48875 jan ,12 jan, 20 sale purchases 680 680 1360 510 1190 1700 880 57.50 62 37400 40800 78200 29325 73780 103105 53372 53372 | 62 | 73780 jan, 28 60.65 60.65 sale total 820 1670 49733 98608 2550 151980 jan. 12 jan.28 working notes average cost= 78200/1360=57.50 average cost= 103105/1700=60.65