Account Question:?

Question

47. The Baby Company sells blankets for $30 each.  The following was taken from the inventory records during July.

Date

Product T

Units

Cost

July 3

Purchase

5

$15

July 10

Sale

3

 

July 17

Purchase

10

$17

July 20

Sale

6

 

July 23

Sale

3

 

July 30

Purchase

10

$20

Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of July using the average inventory cost method. (Points: 4)

       $251

       $226

       $250

       $225

Answer 1

Q47

Date Product T Units Cost

July 3 Purchase 5 $15

July 10 Sale 3

(Bal. 2 @ $15 each)

July 17 Purchase 10 $17

(Bal. 2 @ $15 plus 10 @ $17 = ave. of $16.67)

July 20 Sale 6

July 23 Sale 3

(Bal. 3 @ $16.67)

July 30 Purchase 10 $20

(Bal. 3 @ $16.67 plus 10 @ $20= 13 for total $250)

Answer : $250