During 2012, Wright Company sells 334 remote control airplanes for $108 each. Th

Question

During 2012, Wright Company sells 334 remote control airplanes for $108 each. The company has the following inventory purchase transactions for 2012 ateT Jan. 1 May 5 Purchase Nov. 3Purchase of Units Unit Cost Total Cost on Beginning 214 114 $86$ 5,504 8818,832 96 10,944 392 $35.280 Calculate ending inventory and cost of gdods sold for 2012, assuming the company uses weighted-average cost. (Round your answers to the nearest dollar amount. Omit the s sign in your resconse) Ending inventory Cost of goods sold ReferenceseBook & Resources Dimiculty: Medium Worksheet

Explanation / Answer

Date Particulars Units Rate per unit Cost 1-Jan Beginning Inventory 64 86          5,504 5-May Purchases 214 88        18,832 3-Nov Purchases 114 96        10,944             392        35,280 Weighted Averge Cost Method: Sales 334 108        36,072 Cost of Goods Sold= Total Cost/Total Units = Weighted Avg Cost per Unit = 35280/392 = 90 Cost of Goods Sold= 90*334 Cost of Goods Sold=        30,060 Closing inventory is 392-334 Closing inventory is 58 Cost of Closing inventory is 58*90 Weighted Avg Cost of Closing inventory is =          5,220 Caluclating the Value of Invenotry Using Cost or Market Value which ever is lower Inventory Qty Cost per Unit Cost Market Value Per Unit Market Value Lower of Cost or Market Value Furniture 109 66          7,194 110        11,990       7,194 Electronics 45 299        13,455 259        11,655     11,655

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