Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and s

Question

Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for WCS12 are as follows: 1 Inventory 300 units at $8 13 Sale 175 units 22 Purchase 375 units at $10 29 Sale 280 units Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places. Assuming a perpetual inventory system and using the weighted average method, determine the cost of the merchandise sold on October 29. Round your "average unit cost" to two decimal places. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places.

Explanation / Answer

a. Weighted average cost of inventory = 2400 + 3750 / 675 = $9.11 per unit

b. cost of the merchandise sold on Oct 29 = 280 * 9.11 = $2550.80

c. Inventory on Oct 31 = 220 * $9.11 = $2004.20

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