Brief Exercise 6-1O Cullumber Company uses a perpetual inventory system. Data fo

Question

Brief Exercise 6-1O Cullumber Company uses a perpetual inventory system. Data for product E2-D2 include the purchases shown below. Number of Units 50 36 Unit Price Date May 7 July 28 On June 1, Cullumber Company sold 25 units, and on August 27, 36 more units $16 21 Your answer is incorrect. Try again Calculate the average cost. (Round answers to 3 decimal places, e.g. 5.125 June 1 sale Aug. 27 sale: SHOW LIST OF ACCOUNTS LINK TO TEXT X Your answer is incorrect. Try again Compute the cost of goods sold using FIFO, LIFO, and average-cost. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST Cost of goods sold

Explanation / Answer

Calculate average cost :

June 1 Sale = 25*16 = 400

Aug 27 Sale = (25*16+36*21)/61*36 = $682.229

Compute cost of goods sold :

FIFO LIFO Average cost Cost of goods sold (50*16+11*21) = 1031 (25*16+36*21) = 1156 (400+682) = 1082

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