se the following information to answer questions 4041 PLEC I

se the following information to answer questions 40-41 PLEC Inc. uses the average cost formula in a periodic inventory system. unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.) Jun Beginning inventory 20 units@ $19.00 per unit Jun 5 Purchase Jun 8 Sale Jun 9 Purchase Jun 10 Sale Jun 22 Sale 100 units @ $22.00 per unit 70 units 80 units @ 22.31 per unit 25 units 40 units 40. The cost of goods sold for the month of June is? (a) $4364.80. (b) $3984.80. (c) $2048.80 (d) $2946.24. 41. Ending inventory at the end of June is? (a) $1784.80. (b) $1418.56. (c) $1527.68. (d) $ 3080.00. 42. Stylish Shoe Store reported beginning merchandise inventory of $15,000. During the period, purchases were $70,000: purchase returns, $2,000; and freight in $5,000. A physical count of inventory at the end of the period revealed that $10,000 was still on hand. The cost of goods available for sale was (a) $78,000. (b) $82,000. (c) $88,000 (d) $92,000.

Solution

41) Ending inventory at the end of june:

Opening inventory = 20 units @ $19 = $380

Purchases = 100×22+80×22.31= $3984.8

Sale = 135 units

Closing Inventory = 20+180-135 =65 units

Value of closing inventory = (cost of goods available for sale/number of units)×closing stock

=[(380+3984.8)/200]×65

=$1418.56 i.e b option

40)Cost of goods sold=opening inventory+cost of goods purchased/produced-closing inventory

Cost of goods sold=380+3984.8-1418.56

Cost of goods sold=$2946.24 i.e option d