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

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.

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