Question

Blue Furniture Ltd. uses a perpetual inventory system and has a beginning inventory, as at June 1, of 490 bookcases at a cost of $130 each. During June, the company had the following purchases and sales of bookcases:

			Purchases				Sales
Date			Units		Unit cost		Units		Unit price
June	6		1,200		$132
	10						1,030		$204
	14		1,770		133
	16						1,670		209
	26		960		134

(a)

Determine the cost of goods sold and the cost of the ending inventory using the average cost formula. (Use unrounded numbers for average cost calculations. Round answers to 2 decimal places. e.g 5.52.)

Cost of goods sold		$enter the cost of goods sold in dollars rounded to 2 decimal places
Cost of the ending inventory		$enter the cost of goods sold in dollars rounded to 2 decimal places

Answer 1

Cost of goods sold	$ 356,756.12
Cost of the ending inventory	$ 229,393.88
Date	Purchases				Sales		Balance
	Units	Unit Cost	Total	Units	Unit Cost	Total	Units	Unit Cost	Total
1-Jun							490	$     130.00	$   63,700.00
6	1,200	$     132.00	$ 158,400.00				490	$     130.00	$   63,700.00
							1,200	$     132.00	$ 158,400.00
							1,690	$     131.42	$ 222,100.00
10				1,030	$     131.42	$ 135,362.72	660	$     131.42	$   86,737.28
14	1,770	$     133.00	$ 235,410.00				660	$     131.42	$   86,737.28
							1,770	$     133.00	$ 235,410.00
							2,430	$     132.57	$ 322,147.28
16				1,670	$     132.57	$ 221,393.40	760	$     132.57	$ 100,753.88
26	960	$     134.00	$ 128,640.00				760	$     132.57	100,754
							960	$     134.00	$ 128,640.00
				2,700	$     263.99	$ 356,756.12	1,720	$     133.37	$ 229,393.88