Novak Corp. began the year with 8 units of marine floats at a cost of $11 each. During the year, it made the following purchases: May 5, 34 unit at $16; July 16, 17 units at $21; and December 7, 22 units at $25. Assume there are 29 units on hand at the end of the period. Novak uses the periodic approach. What is the average cost of cost of good sold: $__
Novak Corp. began the year with 8 units of marine floats at a cost of $11 each. During the year, it made the following purchases: May 5, 34 unit at $16; July 16, 17 units at $21; and December 7, 22 units at $25. Assume there are 29 units on hand at the end of the period. Novak uses the periodic approach.
What is the average cost of cost of good sold: $__
Introduction:-
The carrying value of products sold within a certain period is known as the cost of goods sold (COGS). Individual identification, first-in-first-out (FIFO), and average cost are some of the formulas used to correlate costs with specific commodities. All acquisition, conversion, and other costs incurred in bringing the inventories to their current location and condition are included in the costs. Material, labour, and allotted overhead are all included in the costs of commodities produced by enterprises. The costs of items that have not yet been sold are postponed as inventory costs until the inventory is sold or depreciated in value.
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