Question

Jimmie’s Fishing Hole has the following transactions related to its top-selling Shimano fishing reel for the month of June. Jimmie’s Fishing Hole uses a periodic inventory system.

Date			Transactions	Units	Unit Cost					Total Cost
June	1		Beginning inventory	16		$	170				$	2,720
June	7		Sale	11
June	12		Purchase	10			160					1,600
June	15		Sale	12
June	24		Purchase	10			150					1,500
June	27		Sale	8
June	29		Purchase	10			140					1,400
											$	7,220

Using weighted-average cost, calculate ending inventory and cost of goods sold at June 30. (Round your intermediate and final answers to 2 decimal places.)

Ending inventory-

Cost of goods sold-

Answer 1

Periodic Inventory system is a system of inventory recording. In this system inventories are updated periodically like monthly, half yearly or yearly.

Goods Available for sale (Refer Note 1)	$7,220
Divide by: Units available for sale (Refer Note 1)	46
Average Unit Cost	$156.96
Multiply by: Number of Units Sold (11+12+8)	31
Cost of Goods Sold	$4,865.76
Ending Inventory (15 Units * Avg Unit Cost $156.96)	$2,354.40

	Goods Available for Sale	Units	$/Unit	$$
Jun.1	Beginning Inventory	16	$170	$2,720
June.12	Purchases	10	$160	$1,600
June.24	Purchases	10	$150	$1,500
June.29	Purchases	10	$140	$1,400
	Goods Available for Sale (A)	46		$7,220