Question

Exercise 6-15 (Part Level Submission) Pharoah Company sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Pharoah Company's purchases of EZslide snowboards during September. During the same month, 106 EZslide snowboards were sold. Date Units 14 Explanation Inventory Purchases Purchases Purchases Unit Cost $120 123 Total Cost $1,680 5,412 Sept. 1 Sept. 12 Sept. 19 Sept. 26 44 55 124 6,820 25 125 3,125 Totals 138 $17,037 Additional data regarding the company's sales of EZslide snowboards are provided below. Assume that Pharoah Company uses a perpetual inventory system. Date Units Sale Sept. 5 Sept. 16 Sept. 29 Sale Sale 51 106 Totals

Calculate ending inventory using the average cost method.

Answer 1

Date	Purchases	Sales	Balance
Units	Unit Cost	Total	Units	Unit Cost	Total	Units	Unit Cost	Total
Sept. 1							14	120	1680
Sept. 5				8	120	960	6	120	720
Sept. 12	44	123	5412
							44	123	5412
							50	122.64	6132
Sept. 16				47	122.64	5764.08	3	122.64	367.92
Sept. 19	55	124	6820
							55	124	6820
							58	123.93	7187.92
Sept. 26	25	125	3125
							25	125	3125
							83	124.25	10312.92
Sept. 29				51	124.25	6,336.85	32	124.25	3976
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