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 Beginning inventory, 9/1/2018 Purchases: 7,500 units $10.00 4, 500 unita 8 $10.40 9/25 Sales: 9/10 9/29 12,000 units $11.75 4,000 units 6,000 units 14,000 units were on hand at the end of September. 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 al inventory syste te this question by entering your answers in the tabs below Required 1 Required 2 the average ne cost of goods sold for September and Septe ending inventory. (Round "Average Cost per Unit" to 2 decimal places.) Cost of of Cost of Goods of unitsCost per Goods Sold inventory AverageCost of AverageCost |#of units cost! Avaaaale Ending in ending Cost per Inventory Unit Cost Available for sold u Purchases Total

Explanation / Answer

Req a: STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Sep1 balance 7500 10 75000 Purchasse 7-Sep 4500 10.4 46800 25-Sep 12000 11.75 141000 TOTAL 24000 10.95 262800 10000 10.95 109500 14000 10.95 153300 COGS 109,500 Ending Inventory 153,300 Req b: Perpetual inventory RECIEPTS COST OF GOODS SOLD UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Begnining inventory 7500 10 75000 Purchase-Sep7 4500 10.4 46800 Subtotal-Average inventory 12000 10.15 121800 Sales-Sep10 4000 10.15 40600 4000 10.15 40600 Subtotal-Average inventory 8000 10.15 81200 Purchase-Sep 25 12000 11.75 141000 Subtotal-Average inventory 20000 11.11 222,200 Sale-Ssep 29 6000 11.11 66660 6000 11.11 66660 Total 14000 11.11 155,540 10000 107260

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