1. What is the formula for calculating average cost per unit?

2. Ambaw Company reports the following inventory transactions for the month of June:

Calculate the cost of goods sold, ending inventory and gross profit using average cost.

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Beginning Inventory 1,000 units @ $12 per unit 2,000 units @ $18 per unit 2,500 units @ $30 per unit 3,500 units @ $23 per unit 2,000 units @ $33 per unit 1,400 units @ $26 per unit June 1 June 5 Purchase June 10 Sale June 15 Purchase June 20 Sold June 27 Purchase Beginning Inventory 1,000 units @ $12 per unit 2,000 units @ $18 per unit 2,500 units @ $30 per unit 3,500 units @ $23 per unit 2,000 units @ $33 per unit 1,400 units @ $26 per unit June 1 June 5 Purchase June 10 Sale June 15 Purchase June 20 Sold June 27 Purchase

Answer rating: 100% (QA)

1 Average Cost Total Value of Inventory Total Number of Units 2 Calculation of cost of inventory Dat... View the full answer