Purchase Solution

Cost of Goods Sold - Average cost method inventory costing

Not what you're looking for?

Ask Custom Question

Bubba's Hardware Store sells sheets of sandpaper in bulk. On October 1st, Bubba had 4000 sheets of sandpaper at an average cost of $.25 each. The store also made the following purchase of sandpaper inventory during the month:

Date Units Purchased Cost per Unit Total Cost
10/3 8000 $0.24 $1,920
10/17 3000 $0.26 $780
10/21 6000 $0.28 $1,680
10/29 4000 $0.27 $1,080
Total 21000 - $5,460

If the store sold 23,000 sheets of sandpaper during October, which is cost of goods sold using the average cost method of inventory costing? Please describe your answer in detail.

Purchase this Solution

Solution Summary

The solution finds out cost of Goods Sold using average cost method of inventory costing for Bubba's Hardware Store.

Purchase this Solution

Free BrainMass Quizzes
Introduction to Finance

This quiz test introductory finance topics.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.