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Tipton Processing maintains its internal inventory records using average cost under a perpetual inventory system. The followiDetermine the amount Tipton would calculate internally for ending inventory and cost of goods sold using average cost under aI only need to find the average cost per unit under COGS. PLEASE SHOW WORK

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Answer #1

After August 21 purchases there are 100,000 units available at a total cost of $547,080
.

Average cost per unit after August 27 purchases = Total cost/Total Units

= 547,080/100,000

= $5.47

Cost of goods sold on September 12 = Number of units sold x Cost per unit

= 74,000 x 5.47

= $404,780

Ending inventory = 547,080-404,780

= $142,300

Kindly comment if you need further assistance. Thanks‼!

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