You are provided with the following information about Apple River Inc.'s inventory for the month of November:

Instructions
(a) Calculate the ending inventory and cost of goods sold using the average cost method in
(1) A perpetual inventory system, and
(2) A periodic inventory system. (Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.)
(b) Compare your results for items 1 and 2 of part (a), commenting specifically on any differences or similarities between the two inventory systems.

Transcribed Image Text:

Date Explanation Units Unit Cost 100 500 (450) 750 (800) 600 Nov. 1 Beginning inventory Purchase 20 21 1 Sale 16 Purchase 20 Sale 27 Purchase 23