Huron Company Had the Following Activity for the Month of October

question 93

Essay

Huron Company had the following activity for the month of October: $\begin{array}{llll}&\text { Units }\\&\text { Purchased }&\text {Unit Cost }&\text {Total Costs }&\text {Units Sold }\\\hline\text { Opening Inventory: } & 8,000 & \$ 60.00 & \$ 480,000 \\\text { October 3 } & 7,000 & \$ 62.00 & \$ 434,000 \\\text { October 10 } & & &&12,000\\\text { October } 15 & 10,000 & \$ 60.00 & \$ 600,000 \\\text { October } 22 & & & &7,000\\\text { October } 28 & 5,000 & \$ 62.50 & \$ 312,500\\\text { October } 31 & & & &7,000\\\end{array}$ If Huron Company uses a periodic inventory system, calculate the following: A) Ending inventory and cost of goods sold using average costing.
B) Ending inventory and cost of goods sold using FIFO costing.

---

Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, often seen as a measure of producer welfare.

Consumer Surplus

The disparity between the cost consumers are prepared to pay for a good or service and the cost they actually encounter.

Buyers

Individuals or entities that purchase goods or services in the market.