Question

Pharoah Company sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Pharoah Company’s purchases of EZslide snowboards during September. During the same month, 106 EZslide snowboards were sold. Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 14 $120 $1,680 Sept. 12 Purchases 44 123 5,412 Sept. 19 Purchases 55 124 6,820 Sept. 26 Purchases 25 125 3,125 Totals 138 $17,037 Additional data regarding the company’s sales of EZslide snowboards are provided below. Assume that Pharoah Company uses a perpetual inventory system. Date Units Sept. 5 Sale 8 Sept. 16 Sale 47 Sept. 29 Sale 51    Totals 106

(a) Calculate the average unit cost. (Round answers to 3 decimal places, e.g. 5.125.) September 1 $enter a dollar amount September 5 $enter a dollar amount September 12 $enter a dollar amount September 16 $enter a dollar amount September 19 $enter a dollar amount September 26 $enter a dollar amount September 29 $enter a dollar amount

Answer 1

Solution :
	Solution:
	Average Unit Cost
			COST OF GOODS AVAILABLE FOR SALE	COST OF GOODS SOLD	ENDING INVENTORY
	Date	Particulars	No. of Units	Cost Per unit	Total	No. of Units	Cost Per unit	Cost of Goods Sold	No. of Units	Cost Per unit	Ending invetory
	Sept, 01	Beginning inventory							14	$    120.000	$1,680
	Sept, 05	Sales				8	$        120.000	$960	6	$    120.000	$720
	Sept, 12	Purchases	44	$                123.000	$5,412				50	$    122.640	$6,132
	Sept, 16	Sales				47	$        122.640	$5,764	3	$    122.640	$368
	Sept, 19	Purchases	55	$                124.000	$6,820				58	$    123.930	$7,188
	Sept, 26	Purchases	25	$                125.000	$3,125				83	$    124.252	$10,313
	Sept, 29	Sales				51	$        124.252	$6,337	32	$    124.252	$3,976
		Total / Ending Balance	124		$15,357	106		$13,061	32	$    124.252	$3,976
	Answer =	Moving Average unit Cost	Unit Cost
		Sept, 01	$           120.000
		Sept, 05	$           120.000
		Sept, 12	$           122.640
		Sept, 16	$           122.640
		Sept, 19	$           123.930
		Sept, 26	$           124.252
		Sept, 29	$           124.252