Question

Kaleta Company uses the periodic inventory system and reports the following for the month of June. Units Unit Cost Total Cost

Units Unit Cost Total Cost

June 1 Inventory   200    $5 $1,000

June 12 Purchase 400     6 2,400

June 23 Purchase 300    7 2,100

June 30th Inventory 100

Compute the cost of ending inventory and the cost of goods sold using the average-cost method. (Round answers to 0 decimal places)

The ending inventory $________

The Cost of goods sold $__________

Answer 1

	Inventory Details
	Date	Units	Unit Cost	Total cost
	A	B	C	D=B*C
	June 1	200	5.00	1,000.00
	June 12	400	6.00	2,400.00
	June 23	300	7.00	2,100.00
		900.00		5,500.00
	Average cost
	1) Ending Inventory				2) Cost of goods sold
	Date	Units	Average unit cost ($)	Total cost ($)	Date	Units	Average unit cost ($)	Total cost ($)
	A	B	C	D=B*C	A	B	C	D=B*C
	June 30	100	6.11	611.11	NA	800.00	6.11	4,888.89
			Ending Inventory	611.11			Cost of goods sold	4,888.89
	Computation of Average Cost
	Date	Units	Unit Cost	Total cost
	June 1	200	5.00	1,000.00
	June 12	400	6.00	2,400.00
	June 23	300	7.00	2,100.00
	Totals	900		5,500
	No of units			900
	Average Cost (5,500/900)			6.11
	Note:-1 There are total 900 units of inventory and closing stock is 100 units so it means that the Company has sold 800 units therefore the cost of goods sold has been computed for 800 units