Question

Please do it by type not pics. Date              Event Number of Units Price/Unit 1-Jan Beg. Inv...

Please do it by type not pics.

Date              Event

Number
of Units

Price/Unit

1-Jan Beg. Inv

3,000

4.50

5-Jan Purchased

5,000

3.00

14-Jan Sold

4,000

4.00

27-Jan Purchased

6,000

2.00

29-Jan Sold

2,500

3.50

1.Purple Cow Inc. uses the periodic average-cost method to account for their inventory. Using the following information calculate the ending inventory for the month?

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Answer #1
Date Units Unit cost Total
1-Jan 3000 4.5 13500
5-Jan 5000 3 15000
27-Jan 6000 2 12000
Total 14000 40500
Average cost per unit = 40500/14000 = $2.89 (rounded off)
Ending inventory units = 14000-4000-2500 = 7500
Ending inventory for the month using the periodic average-cost method = 7500*2.89 = $21675
Note: The ending inventory would be $21696 if cost per unit is not rounded off.
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