The following units of a particular item were available for sale during the cale

Question

The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory Mar. 18Sale May 2Purchase Aug. 9 Sale Oct. 20Purchase 30,000 units at $30.00 24,000 units 54,000 units at $31.00 45,000 units 21,000 units at $32.10 he 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 5. Round unit cost to two decimal places, if necessary Weighted Average Cost Flow Method Purchases Cost of Merchandise Sold Unit Cost Total Cost Quantity Unit Cost Total Cost Date Quantity Jan. 1 Mar. 18 May 2

Explanation / Answer

60000

30.90

1854000

45000

30.9

1390500

Schedule of cost of merchandise sold Weighted average cost flow method Purchase Cost of merchandise sold Inventory balance Date Quantity Unit cost Total cost Quantity Unit cost Total cost Quantity Unit cost Total cost Jan 1 30000 30 900000 Mar 18 24000 30 720000 6000 30 180000 May 2 54000 31 1674000

60000

30.90

1854000

Aug 9

45000

30.9

1390500

15000 30.90 463500 Oct 20 21000 32.10 674100 36000 31.60 1137600 Balance 2110500 1137600

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.