The following information is taken from the inventory records of the CNB Company

Question

The following information is taken from the inventory records of the CNB Company for the month of September:

Please show solutions.
1. Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory.
2. Repeat requirement 1 assuming that the company uses a perpetual inventory system.

Please answer Sale - September 10 and Sale - September 29 under # of units column.

Beginning inventory, 9/1/2018 5,000 units @ $10.00 Purchases: 9/7 3,000 units @ $10.40 9/25 8,000 units @ $10.75 Sales: 9/10 4,000 units 9/29 5,000 units 7,000 units were on hand at the end of September. Invento ry on hand Cost of Goods Sold Perpetual Average | # of units cost per | Inventory # of units Average Cost of unit Value sold Cost per unit Goods Sold 5,000 10.00 50,000 3,000 8,000 Beginning Inventory Purchase - September 7 Subtotal Average Cost Sale September 10 Subtotal Average Cost Purchase September 25 Subtotal Average Cost Sale September 29 Total 10.40 10.15 10.15 10.15 10.75 31,200 81,200 8,000 8,000 16,000 81,200 86,000 0.55 167,200 10.55 10.55167,200 16,000

Explanation / Answer

1:-

2:-

Periodic System Number of units Cost per unit Cost of goods availabel for sale Number of units Cost per unit Cost of goods sold Number of units Cost per unit Ending inventory Beginning Inventory 5000 $10.00 $50000 purchases:- September 07 3000 $10.40 $31200 September 25 8000 $10.75 $86000 TOTAL 16000 $167200 9000 $10.45 $94050 7000 $10.45 $73150

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