Company Z had the beginning inventory of 500 units at $15 each. On February 1, they...

Company Z had the beginning inventory of 500 units at $15 each. On February 1, they purchased an additional 800 units at $18 each. On March 15, they sold 1000 units at $50 each. On June 1, they purchased another 600 units at $20 each. Lastly, on August 15, they sold another 500 units at $55 each. Calculate the company’s cost of goods sold using average cost. Assume the company uses the periodic method

Expert Solution

Answer: Cost of Goods Sold = $26,760

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Explanation:

Periodic inventory is a system of inventory in which updates are made on a periodic basis. This differs from perpetual inventory systems, where updates are made as seen fit. In a periodic inventory system no effort is made to keep up-to-date records of either the inventory or the cost of goods sold.

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ekkarill92 answered 1 year ago

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