Inventory Costing: Average Cost
Bordeaux Company has the following information related to purchases and sales of one of its inventory items:
| Date |
Description |
Units Purchased at Cost |
Units Sold at Retail |
| June 1 |
Beginning Inventory |
150 units @ $10 = $1,500 |
|
| 9 |
Purchase 1 |
200 units @ $12 = $2,400 |
|
| 14 |
Sale 1 |
|
300 units @ $25 |
| 22 |
Purchase 2 |
250 units @ $14 = $3,500 |
|
| 29 |
Sale 2 |
|
240 units @ $25 |
Assume that Bordeaux uses a perpetual inventory system.
Required:
Calculate the cost of goods sold and the cost of ending inventory using the average cost method. (Use four decimal places for per unit calculations and round all other numbers to the nearest dollar.)