Required: Compute the Ending Inventory and Cost of Goods Sold

question 122

Essay

Required: Compute the ending inventory and cost of goods sold assuming Random Creations uses average cost and a perpetual inventory system.

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Definitions:

Market Price

The amount at which an asset is bought or sold in the market.

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including those held by institutional investors and restricted shares owned by the company’s officers and insiders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the total market value remains the same.

Market Price

The rate currently set for the trade of assets or services in the marketplace.