Академический Документы
Профессиональный Документы
Культура Документы
Apply AVCO method of inventory valuation on the following information, first in periodic inventory system
and then in perpetual inventory system to determine the value of inventory on hand on Mar 31 and cost of
goods sold during March.
Mar 1
Beginning Inventory
Purchase
14
Sale
27
Purchase
29
Sale
Solution
AVCO Periodic
Units Available for Sale
= 60 + 140 + 70
= 270
Units Sold
= 190 + 30
= 220
= 270 220
Units
Unit Cost
Mar 1 Inventory
Mar 5 Purchase
= 50
Total
60
$15.00
$900
140
$15.50
$2,170
70
$16.00
$1,120
270
* $15.52
$4,190
220
$15.52
$3,414
50
$15.52
$776
27 Purchase
* $4,190 270
Cost of Goods Sold
Ending Inventory
AVCO Perpetual
Date
Purchases
Units
Unit Cost
Sales
Total
Units
Unit Cost
Balance
Total
Mar 1
5
140
$15.50
$2,170
14
27
29
31
190
70
$16.00
$15.35
$2,916
$1,190
30
$15.92
$478
Units
Unit Cost
Total
60
$15.00
$900
60
$15.00
$900
140
$15.50
$2,170
200
$15.35
$3,070
10
$15.35
$154
10
$15.35
$154
70
$16.00
$1,120
80
$15.92
$1,274
50
$15.92
$796
50
$15.92
$796