Question

Famous Sportwears uses the average cost inventory method. Famous Sportwears started May with 2 helmets that cost $52 each. On May 19,Famous Sportwears bought 13 helmets at $54 each. On May 28, Famous Sportwears sold 8 helmets Prepare a perpetual inventory record for the average cost method. Round average cost per unit to the nearest cent and all other amounts to the nearest dollar. Start by entering the opening inventory balance. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Round average cost per unit to the nearest cent and all other amounts to the nearest dollar.) Avg Cost: Purchases Cost of goods sold Inventory on hand Unit Total Unit Total Unit Total Date Qty Cost Cost Qty Cost Cost Qty Cost Cost May 19 13 54 702 28 8 Total 13 702 8

Answer 1

	Purchases			Cost of Goods Sold			Ending Balance
Date	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
1-May							2	$              52.00	$                  104
19-May	13	$              54.00	$                  702				15	$              53.73	$                  806
28-May				8	$              53.73	$                  430	7	$              53.74	$                  376
	13		$                  702	8		$                  430	7		$                  376

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