Ayayai Skateshop Ltd. reports the following inventory transactions for its skate

Question

Ayayai Skateshop Ltd. reports the following inventory transactions for its skateboards for the month of April. The company uses the perpetual inventory system. Date Explanation Apr. 1 Beginning inventory 30 Units Unit Cost Total Cost $46 $1,380 630 6 Purchases 42 9 Sales 14 Purchases 20 Sales 28 Purchases 15 (35) 20 (25) 20 39 780 35 700 (a) Determine the cost of goods sold and cost of ending inventory using average cost. (Round answers to 2 decimal places, e.g. 1.25.) Cost of Goods Sold Cost of Ending Inventory

Explanation / Answer

Calculate cost of goods sold and ending inventory using average cost :

Cost of goods sold = 2585.55

Ending inventory = 904.45

Purchase Cost of goods sold ending inventory Date qty unit cost total cost qty unit cost total cost qty unit cost total cost Apr 1 30 46 1380 Apr 6 15 42 630 45 44.67 2010 Apr 9 35 44.67 1563.33 10 44.67 446.67 Apr 14 20 39 780 30 40.89 1226.67 Apr 20 25 40.89 1022.22 5 40.89 204.45 Apr 28 20 35 700 25 36.18 904.45 Balance 2585.55 904.45

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