Question

Shown below is activity for one of the products of Denver Office Equipment:

January 1 balance, 520 units @ $50 $26,000
Purchases:
January 10:	520 units @ $55
January 20:	1,040 units @ $59
Sales:
January 12:	780 units
January 28:	770 units

Required:

Compute the January 31 ending inventory and cost of goods sold for January, assuming Denver uses average cost and a periodic inventory system. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

Answer 1

In the given solution end of the each transaction balance inventory was computed in total units and total value and then per unit value shall be computed by dividing total amount till the date by total units available.

The solution for the question is as follows:

Please comment for any queries... Thank you!!!