During 2012,a Company Sells 20 Units of Inventory Calculate Ending Inventory and Cost of Goods Sold for 2012

question 14

Short Answer

During 2012,a company sells 20 units of inventory.The company has the following inventory purchase transactions for 2012:
$$\begin{array} { l l c c c } \text { Date } & { \begin{array} { c } \text { Transaction }\end{array} } & \begin{array} { c } \text { Number } \\\text { of Units }\end{array} & \begin{array} { c } \text { Unit } \\\text { Cost }\end{array} & \begin{array} { l } \text { Total } \\\text { Cost }\end{array} \\\text { Jan. 1 } & \text { Beginning inventory } & 15 & \$ 60 & \$ 900 \\\text { Sep. 8 } & \text { Purchase } & 10 & 62 & 620 \\\hline & & 25 & & \$ 1,520 \\\hline\end{array}$$
Calculate ending inventory and cost of goods sold for 2012 assuming the company uses weighted-average cost with a periodic inventory system.

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Definitions:

Net Purchases

The total cost of purchases made by a company after deducting any returns, allowances, and discounts.

Cost of Goods Sold

The immediate expenses linked to manufacturing goods for sale within a business, encompassing both materials and workforce costs.

Credit Sales Transactions

Transactions where goods or services are sold to a customer with an agreement that payment will be made at a later date.

Perpetual Inventory System

An accounting method that records inventory purchases and sales in real-time, continuously updating inventory balances.