Question

Sheffield Inc. has provided you with the following information. This company purchases its inventory from a supplier for cash and has only cash sales. Sheffield uses the average cost formula in a perpetual inventory system. Increased competition has recently reduced the price of the product.

Date			Explanation		Units			Unit Cost			Unit Price
Apr.	1		Beginning inventory		50			$78
	6		Purchases		110			89
	8		Sales		(130	)					$120
	15		Purchases		120			68
	20		Sales		(120	)					102
	27		Purchases		20			59

Determine the ending inventory amount for Sheffield. (Round answer to 2 decimal places)

Answer 1

Date	Purchase	issue	Ending Inventory
April	Unit	Unit Cost	Total Cost	Unit	Unit Cost	Total Cost	Unit	Unit Cost	Total Cost
1							50	$78	$3900
6	110	$89	$9790				160	$85.56	$13690
8				130	$85.56	11123.13	30	$85.56	$2566.88
15	120	$68	$8160				150	$71.51	$10726.88
20				120	$71.51	$8581.50	30	$71.51	$2145.38
27	20	$59	$1180				50	66.51	$3325.38
Total	250		$19130	250		$19704.63	50		$3325.38

Ending Inventory

50 Units

$3325.38