Question

Kingbird Company uses a periodic inventory system. For April, when the company sold 600 units, the following information is available. Units Unit Cost Total Cost April 1 inventory 280 $31 $8,680 April 15 purchase 450 37 16,650 April 23 purchase 270 40 10,800 1,000 $36,130 Your answer is correct. Calculate weighted average cost per unit. (Round answer to 2 decimal places, eg. 2.76) Weighted average cost per unit $ 36.13 eTextbook and Media X Your answer is incorrect. Compute the April 30 inventory and the April cost of goods sold using the average-cost method. (Round answers to O decimal places, es 2760) $ 10116 Ending inventory $ 26014 Cost of goods sold

Answer 1

Compute the April 30 inventory and the April cost of goods sold using the average-cost method. Ending Inventory $14,452 Cost of goods sold $21,678 Explanation: Units Available Units Sold Units in Ending Inventory (1,000 – 600) | 1,000 units 600 units 400 units Average-cost method (i) Ending Inventory Units Unit Cost 400 $36.13 Total Cost $14,452 (ii) Cost of goods sold Units Unit Cost $36.13 600 Total Cost $21,678