Chapter $6$ Homework

$($Appendix $6$B$)$ Inventory Costing Methods: Periodic Average Cost

Filimonov Inc. has the following information related to purchases and sales of one of its inventory items:

$\backslash$table$[[$Date$,$Description,Units Purchased at Cost,Units Sold at Retail$],[$June $1,$Beginning Inventory,$150$ units @ $$8=$$$1,200,],[9,$Purchase $1,200$ units @ $$12=$$$2,400,],[14,$Sale $1,250$ units @ $$14=$$$3,500,],[22,$Purchase $2,,],[29,$Sale $2,,]]$

Assume that Filimonov uses a periodic inventory system.

Required:

Colculate the cost of goods sold and the cost of ending inventory using the average cost method.

$($Note: Use four decimal places for per$-$unit calculations and round all other numbers to the nearest dollar.$)$

Cost of goods sold

$$6,208x$

Cost of ending inventory $$

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For cost of goods sold and cost of ending inventory using the average cost method, apply the following steps:

Step $1$: Calculate the cost of goods available for sale for the period.

Step $2$: Apply the Inventory costing method recognizing that under average cost, the cost of goods available for sale is allocated between ending inventory and cost of goods sold based on the average cost of the goods available for sale $($cost of goods available for sale $$ units available for sale$).$