They are buying the inventory. Average the prices based on the number delivered each time. 400 x $8 = $3200. 600 x $9= $5400 and so on. Then add the amounts together and divide by the total number of units.
Saturday, March 14, 2009
Figuring out Average ending inventory and cost of goods sold! PLEASE HELP!? -
Eddings Company had a beginning inventory of 400 units of Product XNA at a cost of $8.00 per unit. During the year, purchases were: Feb. 20600 units @ $9 Aug. 12300 units @ $11 May 5500 units @ $10 Dec. 8200 units @ $12
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