Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were
Question:
Weighted Average Cost Flow Method Under Perpetual Inventory System
The following units of a particular item were available for sale during the calendar year:
Jan. 1 | Inventory | 4,000 units at $20 |
Apr. 19 | Sale | 2,500 units |
June 30 | Purchase | 6,000 units at $24 |
Sept. 2 | Sale | 4,500 units |
Nov. 15 | Purchase | 1,000 units at $25 |
The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 6. Round unit cost to two decimal places, if necessary.
Schedule of Cost of Merchandise Sold Weighted Average Cost Flow Method | |||||||||
Purchases | Cost of Merchandise Sold | Inventory | |||||||
Date | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost |
Jan. 1 | 4,000 | $20 | $80,000 | ||||||
Apr. 19 | 2,500 | $20 | $50,000 | 1,500 | 20 | 30,000 | |||
June 30 | 6,000 | $24 | $144,000 | 7,500 | 23.2 | 174,000 | |||
Sept. 2 | 4,500 | 23.2 | 104,400 | 3,000 | 23.2 | 69,600 | |||
Nov. 15 | 1,000 | 25 | 25,000 | 4,000 | 38.6 | 154,400 | |||
Dec. 31 | Balances | $154,400 | 4,000 | $ | $ |
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider