Question

Marigold Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is available.

		Units		Unit Cost		Total Cost
April 1 inventory		250		$14			$ 3,500
April 15 purchase		420		17			7,140
April 23 purchase		330		18			5,940
		1,000					$16,580

Calculate weighted average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)

Weighted average cost per unit

$enter weighted average cost per unit in dollars rounded to 2 decimal places

  

  

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

Answer 1

Ans.1	Weighted average cost per unit	$16.58
Ans.2	Ending inventory	$7,461
Ans.3	Cost of goods sold	$9,119
	*Calculations:
	Available for sale
	Date	Units	Rate	Total
	01-Apr	250	$14.00	$3,500
	15-Apr	420	$17.00	$7,140
	23-Apr	330	$18.00	$5,940
	Cost of goods available for sale	1000		$16,580
	Average cost per unit =   Total cost of goods available for sale / Total units available
	$16,580 / 1,000
	$16.58	per unit
	Cost of goods sold   =   No. of units sold * Average cost per unit
	550 * $16.58
	$9,119
	Ending inventory = Total cost of goods available for sale -   Cost of goods sold
	$16,580 - $9,119
	$7,461