Question

Cornerstone Exercise 6-24 (Algorithmic) Inventory Costing: Average Cost Filimonov Inc. has the following information related to purchases and sales of one of its inventory items: Date Description Units Purchased at Cost Units Sold at Retail June 1 Beginning Inventory 150 units @ $10 = $1,500 9 Purchase 1 200 units $12 - $2,400 14 Sale 1 300 units @ $25 22 Purchase 2 250 units $14 - $3,500 29 Sale 2 212 units $25 Assume that Filimonov uses a perpetual inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. (Note: Round per-unit calculations and final answers to two decimal places.) Cost of goods sold $620,980 Cost of ending inventory $ 118,976 X Feedback Check My Work For cost of goods sold and cost of ending inventory using the average cost method, apply the following steps: Step 1: Calculate the cost of goods available for sale immediately prior to the sale transaction Step 2: Apply the inventory costing method, recognizing that under average cost, the cost of goods available for sale is alocated between ending inventory and cost of goods sold, based on a weighted average cost of the goods available for sale (cost of goods available for sale units available for sale) Step 3: Repeat the first two steps for all inventory transactions during the period < Previous Next amaining

Answer 1

Cost of Goods Sold	$ 6,210
Cos of Ending Inventory	$ 1,190

	Goods Purchased			Cost of Goods Sold			Inventory Balance
Date	Units	Unit Cost	Total Cost	Units	Unit Cost	Total Cost	Units	Unit Cost	Total Cost
June 1							150	$ 10	$ 1,500
9	200	$ 12	$ 2,400				350	11.14	3,900
14				300	$ 11.14	$ 3,342	50	11.14	558
22	250	14	3,500				300	13.53	4,058
29				212	13.53	2,868	88	13.53	1,190
Totals	450		$ 5,900	512		$ 6,210	88		1,190