Problem:
A flood recently destroyed many of the financial records of Yak Manufacturing Company. Management has hired you to re-create as much financial information as possible for the month of July. You are able to find out that the company uses an average cost inventory valuation system. You also learn that Yak makes a physical cout at the end of each month in order to detemine monthly ending inventory values. By examining various documents you are able to gather the followng information:
Enging inventory at July 31.....................................................60,000 units
Total cost of units available for sale in July ............................$145,210
Cost of goods sold during July................................................$116,410
Cost of beginning inventory, July 1.........................................$0.40 per unit
Gross profit on sales for July.....................................................$93,590
July purchases:
July 5 ............................55,000 units $0.51 unit cost
July 11..........................53,000 units 0.50 unit cost
July 15............................45,000 units 0.55 unit cost
July 16............................47,000 units 0.53 unit cost
You are asked to provide the following information:
1) Number of units on hand, July 1
2) Units sold during July
3) Unit cost of inventory at July 31
4) Vaue of inventory at July 31