inventory Costing: Average Cost Filimonov Inc. has the following information related to purchases and sales of one of its inventory items: Date Description Units Sold at Retail June 1 Beginning Inventory 9 Purchase 11 Units Purchased at Cost 200 units@ $10-$2,000 300 units $12-$3,600 14 Sale 1 22 Purchase 2 29 Sale 2 Assume that Filimonov uses a perpetual inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. (Note: Round per-unit calculations to two dec Cost of goods sold 7,450 ✔ Cost of ending inventory 1,350 X 250 units @ $14- $3,500 400 units @ $25 225 units @ $25

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in…