Originally Posted by
sweetkendra
Assumming that a perpetual inventory system is used, what is ending inventory (rounded) under the average-cost method?
Sept. 1 Beginning inventory 10 units @$120
5 Purchase 60 units @$112
14 Sale 40 units
21 Purchase 30 units @$116
30 Sale 28 units
answers given
a) $3,666
b) $3,712
c) $3,208
d) $7,734
Date... Goods Purchased... Cost of goods sold... inventory Bal.
9/1... begining inventory... 10@120=$1,200
9/5... 60@112= $6,720... 10@120=$1,200
... 60@112=$6,720
... avg. 70@$113
9/14... 40@113=$4,526... 30@113=$3,394
9/21... 30@116= $3,480... 30@113=$3,394
... 30@116=$3,480
... avg.60@$115
9/30... 28@115=$3,208... 32@115=$3,666
OK as you can see the answer to your Qs is "a"