Danny’s YoYos sells high quality yoyos. The inventory, purchases, and sales for a recent month in chronological order are as follows:DateActivitiesUnits Acquired and SoldOct 1Beginning inventory100 units @ $5.50 per unitOct 4Sales20 unitsOct 7Purchase165 units @ $5.95 per unitOct 10Sales180 unitsOct 16Purchase40 units @ $6.25 per unitOct 28Sales50 unitsAssume that Danny’s YoYos uses a perpetual inventory system.RequirementsCompute cost of goods available for sale and the number of units available for sale.Compute the number of units in ending inventory.Compute the cost assigned to ending inventory using:Weighted average (step-by-step using table)

Name: Danny’s YoYos sells high quality yoyos. The inventory, purchases, and
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Description: Danny’s YoYos sells high quality yoyos. The inventory, purchases, and sales for a recent month in chronological order are as follows:DateActivitiesUnits Acquired and SoldOct 1Beginning inventory100 units @ $5.50 per unitOct 4Sales20 unitsOct 7Purchas

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Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.11E: Inventory Costing Methods VanderMeer Inc. reported the following information for the month of...

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Danny’s YoYos sells high quality yoyos. The inventory, purchases, and sales for a recent month in chronological order are as follows:

Date	Activities	Units Acquired and Sold
Oct 1	Beginning inventory	100 units @ $5.50 per unit
Oct 4	Sales	20 units
Oct 7	Purchase	165 units @ $5.95 per unit
Oct 10	Sales	180 units
Oct 16	Purchase	40 units @ $6.25 per unit
Oct 28	Sales	50 units

Assume that Danny’s YoYos uses a perpetual inventory system.

Requirements

Compute cost of goods available for sale and the number of units available for sale.
Compute the number of units in ending inventory.
Compute the cost assigned to ending inventory using:

Weighted average (step-by-step using table)

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