00:01
So here, for number one, for our average cost method, first we can do, figure out our total cost of goods sold, or available for sale.
00:16
To figure this out, we're going to do $4 ,000 times $10, plus $36 ,000 times $10 .40, plus $12 ,000 times $11, plus $6 ,000 times $12.
00:37
And we are going to get that our total cost of our goods sold is $1 ,008 ,000.
00:49
Then, we want to figure out our total units available for sale.
00:55
Our total units is going to be $4 ,000 plus $36 ,000 plus $12 ,000 plus $6 ,000, which is going to give us $58 ,000.
01:11
So then we can figure out our average cost by taking our total amount of goods divided by our total units, and we are going to get $17 .38.
01:28
Then, we can calculate our ending inventory.
01:35
Our ending inventory will take $10 ,000 times our $17 .38, and we're going to get $173 ,800.
01:48
So then, we can figure out our cost of goods sold by taking $48 ,000 times $17 .38 minus $14 ,000 times $10, minus $32 ,000 times $10 .40 to get $536 ,000...