9. olympic enterprises has the following inventory data: assuming average cost, what is the cost of goods…

9. olympic enterprises has the following inventory data: assuming average cost, what is the cost of goods sold for the june 14 sale?\n| date | | quantity | unit cost |\n| june 1 | beginning inventory | 5 | $52 |\n| june 4 | purchase | 10 | $55 |\n| june 7 | sale | 12 | |\n| june 11 | purchase | 9 | $58 |\n| june 14 | sale | 8 | |

9. olympic enterprises has the following inventory data: assuming average cost, what is the cost of goods sold for the june 14 sale?\n| date | | quantity | unit cost |\n| june 1 | beginning inventory | 5 | $52 |\n| june 4 | purchase | 10 | $55 |\n| june 7 | sale | 12 | |\n| june 11 | purchase | 9 | $58 |\n| june 14 | sale | 8 | |

Answer

Explanation:

Step1: Calculate the cost of goods available for sale before June 14

First, find the cost of beginning - inventory and purchases. The cost of beginning inventory on June 1 is $5\times52 = 260$. The cost of the June 4 purchase is $10\times55=550$. After the June 7 sale, the remaining inventory quantity and cost need to be recalculated. But we can also calculate the total cost of goods available for sale before June 14 in a cumulative way. The cost of the June 11 purchase is $9\times58 = 522$. The total cost of goods available for sale before June 14 is $260 + 550+522=1332$. The total quantity of goods available for sale before June 14 is $5 + 10+9=24$ (after accounting for the June 7 sale).

Step2: Calculate the average cost per unit

The average cost per unit $AC=\frac{1332}{24}=55.5$.

Step3: Calculate the cost of goods sold on June 14

The quantity of goods sold on June 14 is 8. The cost of goods sold on June 14 is $8\times55.5 = 444$.

Answer:

$444$