Question

How do you calculate the cost of ending inventory and the cost of goods sold given...

How do you calculate the cost of ending inventory and the cost of goods sold given the following:

Date                     Units Produced                     Cost per unit                Ending Inventory

March1                 15 Xbox's 360                         $275                          2 Xbox's from March

April 1                   45 Xbox's 360                          250                          15 Xbox's from April

May 1                    60 Xbox's 360                         240                           12 Xbox's from May

****For cost of ending Inventory I got $7,180 for my answer, and for Cost of goods sold I keep getting $22,595 and the book says the answer is $22,635. I do not know what I am doing wrong. Please show work for how you got the answer if you can. Thank you.

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Homework Answers

Answer #1

Ending inventory:

2 units from March = 2 × $275 = $550

15 units from April = 15 × $250 = $3,750

12 units from May = 12 × $240 = $2,880

Total ending inventory = 550 + 3,750 + 2,880

                                       = $7,180 (Answer)

Cost of goods sold:

This is the aggregate of remaining.

(15 – 2 =) 13 units from March = 13 × $275 = $3,575

(45 – 15 =) 30 units from April = 30 × $250 = $7,500

(60 – 12 =) 48 units from May = 48 × $240 = $11,520

Cost of goods sold = 3,575 + 7,500 + 11,520

                                = $22,595 (Answer)

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