Inventory Costing Methods

Refer to the data in the table.                                                                      (2 points)

Of the 1600 items sold, 300 were sold from the beginning inventory, 500 were sold after the first purchase, 600 were sold after the second purchase and 200 were sold after the third purchase.

Required:

The cost of goods sold under average cost (perpetual inventory) is:

On hand at start of period First purchase Second purchase Third purchase Number of units available for sale On hand at end of period | Number of units sold during period 400 units $3.00 unit cost 600 units S3.50 unit cost 700 units S3.30 unit cost 500 units 2.200 total units $3.40 unit cost 600 units 1,600 sold