Highlander Corporation sells swords for decorative purposes. It would like to know the difference in cost...

 

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Highlander Corporation sells swords for decorative purposes. It would like to know the difference in cost of goods sold and ending inventory if it uses the weighted average method or the moving average method. Swords retail for $120 each. Use the following information to help determine these amounts for the second quarter. Date Number of Items Cost per Item April 1 $70 April 13 $72 May 5 May 25 June 10 1,700 Purchased 600 Sold 1,000 Purchased 800 Sold 1,500 Based on this information, what is: $73 a. The amount of cost of goods sold under a weighted average system is: $ b. The amount of ending inventory under a weighted average system is: $ c. The amount of cost of goods sold under a moving average system is: $ d. The amount of ending inventory under a moving average system is: $ Highlander Corporation sells swords for decorative purposes. It would like to know the difference in cost of goods sold and ending inventory if it uses the weighted average method or the moving average method. Swords retail for $120 each. Use the following information to help determine these amounts for the second quarter. Date Number of Items Cost per Item April 1 $70 April 13 $72 May 5 May 25 June 10 1,700 Purchased 600 Sold 1,000 Purchased 800 Sold 1,500 Based on this information, what is: $73 a. The amount of cost of goods sold under a weighted average system is: $ b. The amount of ending inventory under a weighted average system is: $ c. The amount of cost of goods sold under a moving average system is: $ d. The amount of ending inventory under a moving average system is: $

Answer rating: 100% (QA)

Lets calculate the weighted average cost per item first Weighted Average Cost per Item Total Cost of ... View the full answer