During January, a company that uses a perpetual inventory system had the followi

Question

During January, a company that uses a perpetual inventory system had the following information: Beginning Inventory, 60 units @ $11 each = $660 Jan. 5 Purchase, 40 units @ $13 each = $520 Jan. 15 Sale, 47 units @ ? Using the Weighted-average method, fill in the amounts for the average cost per unit, the Cost of Goods Sold for the January 15 sale and the Inventory Balance after the January 15 sale. For the amounts, don't enter a decimal point, comma, cents, or a $. Round ALL amounts (including per unit costs) to the nearest whole dollar. is the average cost per unit, is the Cost of Goods Sold for the January 15 sale, and is the Inventory Balance after the January 15 sale.

Explanation / Answer

Average cost per unit on jan 15 or jan 5 =÷$660+$520)/100

=$11.80

Date purchase cost of good sold ending inventory Beginning balance 60 ×$11=$660 Jan 5. 40×$13=$520 100×$11.80=$1180 Jan 15 47×$11.8=$555 53×$11.8=$625

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