Question

XYZ Inc. uses the average cost formula in a perpetual inventory system.

(Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.)

Jun    1       Beginning inventory   20 units @ $19.00 per unit

Jun    5       Purchase                    100 units @ $22.00 per unit

Jun    8       Sale                            70 units

Jun    9       Purchase                    80 units @ 22.31 per unit

Jun 10       Sale                            25 units

Jun 22       Sale                            40 units

59. The cost of goods sold for the June 8 sale is

(a) $1,480.00.

(b) $1,505.00.

(c) $1,527.68.

(d) $1,540.00.

60. The cost of goods sold for the June 10 sale is

(a) $545.60.

(b) $549.96.

(c) $550.00.

(d) $557.75.

61. Total cost of goods sold for the month of June is

(a) $2,914.65.

(b) $2,934.90.

(c) $2,946.24.

(d) $2,994.80.

62. XYZ Inc. has an ending inventory on June 30 of

(a) $1,370.00

(b) $1,418.56.

(c) $1,429.90.

(d) $1,450.15.

Answer 1