2.

Average-Cost Method: Periodic Inventory System

Assume the following data with regard to inventory for Vegan Company:

Aug. 1		Inventory	40		units @ $10 per unit	$ 400
8		Purchase	50		units @ $11 per unit	550
22		Purchase	35		units @ $12 per unit	420
Goods available for sale			125		units	$1,370
Aug. 15		Sale	58		units
28		Sale	25		units
Inventory, Aug. 31			42		units

Calculate the cost of ending inventory and cost of goods sold according to the average-cost method under the periodic inventory system. In your calculations round average unit cost to the nearest cent and round your final answers to the nearest dollar.

	Average-Cost method
Cost of ending inventory:	$
Cost of goods sold:	$