Units Unit Cost Total Cost 380 14,440 1,000 $34,580 (b) Compute the April 30 inv

Question

Units

Unit Cost

Total Cost

380

14,440

1,000

$34,580

(b)

Compute the April 30 inventory and the April cost of goods sold using the average-cost method.

Blades Inc. uses a periodic inventory system. For April, when the company sold 450 units, the following information is available.

Units

Unit Cost

Total Cost

April 1 inventory 260 $29 $ 7,540 April 15 purchase 360 35 12,600 April 23 purchase

380

38

14,440

1,000

$34,580

(b)

Compute the April 30 inventory and the April cost of goods sold using the average-cost method.

Explanation / Answer

average-cost =Total cost/Total units

=(34580/1000)=$34.58 per unit

Hence cost of goods sold=(34.58*450)=$15561

Ending inventory=(1000-450)=550 units

Hence ending inventory=(550*34.58)=$19019

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