Beginning inventory, purchases, and sales data for cell phones are as follows:?
ID: 2523225 • Letter: B
Question
Beginning inventory, purchases, and sales data for cell phones are as follows:? ?
??
July 1
Inventory .
20 units
@
$70
10
Purchase
30 units
@
$80
15
Sale
30 units
18
Purchase
30 units
@
$100
23
Sale
25 units
?
Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of merchandise sold and ending inventory using Weighted-Average.? Weighted Average
July 1
Inventory .
20 units
@
$70
10
Purchase
30 units
@
$80
15
Sale
30 units
18
Purchase
30 units
@
$100
23
Sale
25 units
Explanation / Answer
Ending Inventory Balance = $2260
Cost of merchandise sold = $4540
WEIGHED AVERAGE METHOD INVENTORY SCHEDULE
Date
Qty Purchased
Unit Cost
Total Cost
Qty Sold
Unit cost
Cost of goods sold
Ending Inv.Qty
Unit Cost
Total Inventory
July 1
20
70
1400
July 10
30
80
2400
20
70
1400
30
80
2400
July 15
30
76
2280
20
76
1520
July 18
30
100
3000
20
76
1520
30
100
3000
July 23
25
90.40
2260
25
90.40
2260
TOTAL
4540
25
2260
July 15 Weighted Average Cost = (1400+2400)/50 = 76
July 23 Weighted Average Cost = (1520+3000)/50= 90.40
Date
Qty Purchased
Unit Cost
Total Cost
Qty Sold
Unit cost
Cost of goods sold
Ending Inv.Qty
Unit Cost
Total Inventory
July 1
20
70
1400
July 10
30
80
2400
20
70
1400
30
80
2400
July 15
30
76
2280
20
76
1520
July 18
30
100
3000
20
76
1520
30
100
3000
July 23
25
90.40
2260
25
90.40
2260
TOTAL
4540
25
2260
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