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22 May, 17:39

Compute the April 30 inventory and the April cost of goods sold using the average-cost method. (Round answers to 0 decimal places, e. g. 2,760.) Ending inventory $enter the ending inventory in dollars rounded to 0 decimal places Cost of goods sold $enter the cost of goods sold in dollars rounded to 0 decimal places

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  1. 22 May, 18:06
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    The weighted average cost per unit is = $19.76, cost of goods sold is $8,892, the ending inventory is = $10,868

    Explanation:

    Solution

    Given that:

    Cost of goods available for sale

    Units Unit Cost Total Cost

    April 1 inventory 280 $17 $ 4,760

    April 15 purchase 420 20 8,400

    April 23 purchase 300 22 6,600

    1,000 $19,760

    Now,

    The weighted average cost per unit = Total cost/Total available units

    = 19,760/1,000

    = $19.76

    Thus,

    The Cost of goods sold = Number of units sold x Weighted average cost per unit

    = 450 x 19.76

    = $8,892

    The Ending inventory = Number of units in the ending inventory x Weighted average cost per unit

    = 550 x 19.76

    = $10,868

    Complete question: Cheyenne Company uses a periodic inventory system. For April, when the company sold 450 units, the following information is available:

    Units Unit Cost Total Cost

    April 1 inventory 280 $17 $ 4,760

    April 15 purchase 420 20 8,400

    April 23 purchase 300 22 6,600

    1,000 $19,760

    (1) Calculate weighted average cost per unit

    (2) Compute the April 30 inventory and the April cost of goods sold using the average-cost method
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