5-6 Perpetual:Inventory costing with weighted average LO Pl as A company reports

Question

5-6 Perpetual:Inventory costing with weighted average LO Pl as A company reports the following beginning inventory and purchases for the month of January. On Jenuary G, the compary sells 280 units. 130 units remain in ending inventory at January 31 Beginning inventory on January1250 $2.30 Purchase on January 9 Purchase on January 25 60 2.50 100 264 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventary whetn costs ara assigned based on the weighted average method. (Round your per unit costs to 2 decimal places.) Weighted Average Perpetual: Cost of Goods Sold t of Cost per unitsunit Cost of Goods! Sold #of Cost per Coat per Inventory Date # of units unitsold unit 250$ 2.30575.00 S 000 Average cost January 245 Average cost 26 Totals

Explanation / Answer

CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER WEIGHTED AVERAGE COST METHOD Purchases Sales Balance Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Jan, 01 Beginning Inventory 250 $2.30 $575.00 January , 09 Purchases 60 2.5 150 250 $2.30 $575.00 60 $2.50 $150.00 Average Cost 310 $2.34 $725.00 January , 25 Purchases 100 2.64 264 250 $2.30 $575.00 60 $2.50 $150.00 100 $2.64 $264.00 Average Cost 410 $2.41 $989.00 Note: 1 Avg. Cost as on Jan, 09 = Total Cost / Total inventory Avg. Cost as on Jan, 09 = $ 725 / 310 Units Avg. Cost as on Jan, 09 = 2.34 Per units Note: 2 Avg. Cost as on Jan, 25 = Total Cost / Total inventory Avg. Cost as on Jan, 25 = $ 989 / 410 Unit Avg. Cost as on Jan, 25 = 2.41 Per unit

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