Brief Exercise 8-4 Cheyenne Company uses a periodic inventory system. For April,
ID: 2590887 • Letter: B
Question
Brief Exercise 8-4 Cheyenne Company uses a periodic inventory system. For April, when the company sold 650 units, the following information is available. Units Unit Cost Total Cost April 1 inventoy 350 April 15 purchase 370 April 23 purchase 280 1,000 $24 29 31 $ 8,400 10,730 8,680 27,810 Calculate weighted average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Weighted average cost per unit LINK TO TEXT Compute the April 30 inventory and the April cost of goods sold using the average-cost method. (Round answers to 0 decimal places, e.g. 2,760.) Ending inventory s Cost of goods sold s LINK TO TEXTExplanation / Answer
Answer:-1)- Weighted average cost per unit = Total cost/Total units
= $27810/1000 units = $27.81 per unit
Ending inventory = Total units – Sold units
=1000 units – 650 units
= 350 units
Ending inventory in $ = Ending inventory* Weighted average cost per unit
=350 units*$27.81 per unit
= $9734
Cost of goods sold $ = Sold units* Weighted average cost per unit
= 650 units*$27.81 per unit
= $18077
2)-FIFO Method:-
Ending inventory = Total units – Sold units
=1000 units – 600 units
= 400 units
Ending inventory in $ =(80 units *$19 per unit)+(320 units*$21 per unit)
= $1520+$6720
= $8240
Cost of goods sold =$10590
Cost of goods sold (FIFO method) Unit sold Units Rate per unit $ Amount 600 270 16 4320 330 19 6270 600 10590Related Questions
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