Question

Aydin Ltd uses perpetual inventory in connection with Average costing. The company began the year with zero inventory balance. They had the following transactions during the year: 1 July Purchased 50 units at $3.00 per unit

5 July Sold 10 units at a price of $10.00 per unit

7 July Purchased 130 units at $4.00 per unit

9 July Sold 60 units at a price of $ 11.00 per unit

15 July Purchased 60 units at $5.00 per unit

30 July Sold 50 units at a price of $12.00 per unit

At the end of the year, they counted the inventory and found 125 units remaining. Is this correct? If incorrect, what is the correct number of units remaining in inventory? How much was the Cost of sales for the year? (Round to the nearest whole dollar)

Answer 1

Paticulars		Purchase	Sale	Closing
		Qty	Rate per Unit($)	Total	Qty	Rate per Unit($)	Total	Qty	Rate	Total
1 July Purchased 50 units at $3.00 per unit		50.00	3.00	150.00	-	-	.	50.00	3.00	150.00
5 July Sold 10 units at a price of $10.00 per unit			-	-	10.00	3.00	30.00	40.00	3.00	120.00
7 July Purchased 130 units at $4.00 per unit		130.00	4.00	520.00	-	-	-	170.00	3.76	640.00
9 July Sold 60 units at a price of $ 11.00 per unit			-	-	60.00	3.76	225.88	110.00	3.76	414.12
15 July Purchased 60 units at $5.00 per unit		60.00	5.00	300.00	-	-	-	170.00	4.20	714.12
30 July Sold 50 units at a price of $12.00 per unit			-	-	50.00	4.20	210.03	120.00	4.20	504.08
Cost of Goods Sold							465.92
No this is not Correct		No
Correct units		120
Cost of Goods Sold		465.92