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Compute the April 30 inventory and the April cost of goods sold using the average-cost method. (Round answers to 0 decimal places, e.g. 2,760.) Ending inventory $enter the ending inventory in dollars rounded to 0 decimal places Cost of goods sold $enter the cost of goods sold in dollars rounded to 0 decimal places

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Answer:

The weighted average cost per unit is = $19.76, cost of goods sold is $8,892, the ending inventory is =  $10,868

Explanation:

Solution

Given that:

Cost of goods available for sale

                                           Units       Unit Cost          Total Cost

April 1 inventory                  280            $17                 $ 4,760  

April 15 purchase                420            20                   8,400  

April 23 purchase                300           22                   6,600

                                           1,000                                  $19,760

Now,

The weighted average cost per unit = Total cost/Total available units

= 19,760/1,000

= $19.76

Thus,

The Cost of goods sold = Number of units sold x Weighted average cost per unit

= 450 x 19.76

= $8,892

The Ending inventory = Number of units in the ending inventory x Weighted average cost per unit

= 550 x 19.76

= $10,868

Complete question: Cheyenne Company uses a periodic inventory system. For April, when the company sold 450 units, the following information is available:

                               Units       Unit Cost          Total Cost

April 1 inventory      280            $17                  $ 4,760  

April 15 purchase      420           20                   8,400  

April 23 purchase     300            22                  6,600

                                  1,000                                 $19,760

(1) Calculate weighted average cost per unit

(2) Compute the April 30 inventory and the April cost of goods sold using the average-cost method

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