A Company Sells a Single Product and Had the Following

question 54

Essay

A company sells a single product and had the following beginning inventory, purchases, and sales during March.
$$\begin{array} { | r | r | r | r | } \hline & & \text { Number wi units } & \text { Price per unit } \\\hline & \text { Beginning Inventory } & 20 & 8 \\\hline \text { March 6 } & \text { Purchase } & 40 & 10 \\\hline 8 & \text { Purchase } & 50 & 9 \\\hline 10 & \text { Sale } & 45 & 13 \\\hline 12 & \text { Sale } & 35 & 13 \\\hline 30 & \text { Purchase } & 25 & 7 \\\hline\end{array}$$ Calculate the cost of the ending inventory under each assumption below:
(1) The compary uses a periodic inventory systern ard determiries cost on a FIFO basis.
Endinig inventory cost_________________

(2) The compary uses a periodic irmentory system ard deterniries cost an a weighted average basis. (Round average cost per wit to 2 decimals.)
Endinig invenitory cost__________________

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Definitions:

Consumer Price Index

The Consumer Price Index measures the average change over time in the prices paid by consumers for a basket of goods and services.

Base Year

Base year is a specific year against which economic growth or other market indices are measured, serving as a standard or reference point for economic analysis.

CPI

The Consumer Price Index reflects the weighted average price changes in a variety of consumer goods and services, such as medical services, food, and transportation.

Goods and Services

Physical products (goods) and intangible assistance or benefits (services) produced to satisfy the wants and needs of consumers.