   Chapter 6, Problem 24CE ### Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

#### Solutions

Chapter
Section ### Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
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# Inventory Costing: Average CostRefer to the information for Filimonov Inc. and assume that the company uses a perpetual inventory system.Required:Calculate the cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)

To determine

Concept introduction:

Average method:

Under this method, the cost per unit of the inventory is calculated as weighted average cost per unit and the cost of goods sold and inventory is calculated with the help of weighted average cost per unit.

To calculate:

The Cost of goods sold and ending inventory using the perpetual average cost method.

Explanation

The Cost of goods sold and ending inventory using the perpetual average cost method is calculated as follows:

 Filimonov Inc. Perpetual Inventory Record-Average Cost Purchases Cost of Goods Sold Inventory Balance Date Unit Rate Total Cost Unit Rate Total Cost Unit Rate Total Cost June. 1 200 \$ 10.0000 \$ 2,000 June. 9 300 \$ 12 \$ 3,600 200 \$ 10.0000 \$ 2,000 300 \$ 12...

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