Weighted Average Cost Flow Method Under Perpetual Inventory System The following
ID: 2446750 • Letter: W
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
$
$
some of the answer are not correct
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
Explanation / Answer
nov 15 and Dec 31 entry are wrongs ,please make following corrections since purchase entry for nov 15 is correct I have left that column Cost of Merchandise sold inventory Date Qty unit total Qty unit total cost cost cost cost 15-Nov 4000 23.65 94600 31-Dec Balances 6500 154,400 4,000 23.65 94600
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