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Entries and Perpetual Inventory Account (Weighted Average) EXHIBIT 5 Item 127B Jan. 4 Accounts Receivable 21,000 Sales 21,000 Cost of 4 Cost of Merchandise Sold 14,000 Purchases Merchandise Sold Inventory Merchandise Inventory 14,000 Unit Total Unit Total Unit Total 10 Merchandise Inventory Date Quantity 11,200 Quantity Cost Cost Quantity Cost Cost Cost Cost Accounts Payable 11,200 Jan. 1 20,000 1,000 20.00 20.00 14,000 700 300 20.00 6,000 22 Accounts Receivable 10,800 22.40 11,200 10 500 800 21.50 17,200 Sales 10,800 7,740 9,460 22 360 21.50 440 21.50 22 Cost of Merchandise Sold 7,740 240 28 21.50 5,160 200 21.50 4,300 Merchandise Inventory 7,740 23.30 13,980 30 600 800 22.85 18,280 Balances 31 26,900 800 22.85 18,280 28 Accounts Receivable 7,200 Sales 7,200 28 Cost of Merchandise Sold 5,160 Cost of January 31 inventory Merchandise Inventory 5,160 merchandise sold 30 Merchandise Inventory Accounts Payable 13,980 13,980 ->

Entries and Perpetual Inventory Account (Weighted Average) EXHIBIT 5 Item 127B Jan. 4 Accounts Receivable 21,000 Sales 21,000 Cost of 4 Cost of Merchandise Sold 14,000 Purchases Merchandise Sold Inventory Merchandise Inventory 14,000 Unit Total Unit Total Unit Total 10 Merchandise Inventory Date Quantity 11,200 Quantity Cost Cost Quantity Cost Cost Cost Cost Accounts Payable 11,200 Jan. 1 20,000 1,000 20.00 20.00 14,000 700 300 20.00 6,000 22 Accounts Receivable 10,800 22.40 11,200 10 500 800 21.50 17,200 Sales 10,800 7,740 9,460 22 360 21.50 440 21.50 22 Cost of Merchandise Sold 7,740 240 28 21.50 5,160 200 21.50 4,300 Merchandise Inventory 7,740 23.30 13,980 30 600 800 22.85 18,280 Balances 31 26,900 800 22.85 18,280 28 Accounts Receivable 7,200 Sales 7,200 28 Cost of Merchandise Sold 5,160 Cost of January 31 inventory Merchandise Inventory 5,160 merchandise sold 30 Merchandise Inventory Accounts Payable 13,980 13,980 ->

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 2PEA: Beginning inventory, purchases, and sales for Item ProX2 are as follows: Assuming a perpetual...
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The following units of a particular item were available for sale during the calendar year:
Jan. 1                                  Inventory              4,000 units at $20
Apr. 19                               Sale                       2,500 units
June 30                              Purchase               6,000 units at $24
Sept. 2                                Sale                        4,500 units
Nov. 15                           Purchase                  1,000 units at $25
The firm uses the weighted average cost method with a perpetual inventory system.
Determine the cost of merchandise sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5.

Entries and Perpetual Inventory Account (Weighted Average) EXHIBIT 5 Item 127B Jan. 4 Accounts Receivable 21,000 Sales 21,000 Cost of 4 Cost of Merchandise Sold 14,000 Purchases Merchandise Sold Inventory Merchandise Inventory 14,000 Unit Total Unit Total Unit Total 10 Merchandise Inventory Date Quantity 11,200 Quantity Cost Cost Quantity Cost Cost Cost Cost Accounts Payable 11,200 Jan. 1 20,000 1,000 20.00 20.00 14,000 700 300 20.00 6,000 22 Accounts Receivable 10,800 22.40 11,200 10 500 800 21.50 17,200 Sales 10,800 7,740 9,460 22 360 21.50 440 21.50 22 Cost of Merchandise Sold 7,740 240 28 21.50 5,160 200 21.50 4,300 Merchandise Inventory 7,740 23.30 13,980 30 600 800 22.85 18,280 Balances 31 26,900 800 22.85 18,280 28 Accounts Receivable 7,200 Sales 7,200 28 Cost of Merchandise Sold 5,160 Cost of January 31 inventory Merchandise Inventory 5,160 merchandise sold 30 Merchandise Inventory Accounts Payable 13,980 13,980 ->
Transcribed Image Text:Entries and Perpetual Inventory Account (Weighted Average) EXHIBIT 5 Item 127B Jan. 4 Accounts Receivable 21,000 Sales 21,000 Cost of 4 Cost of Merchandise Sold 14,000 Purchases Merchandise Sold Inventory Merchandise Inventory 14,000 Unit Total Unit Total Unit Total 10 Merchandise Inventory Date Quantity 11,200 Quantity Cost Cost Quantity Cost Cost Cost Cost Accounts Payable 11,200 Jan. 1 20,000 1,000 20.00 20.00 14,000 700 300 20.00 6,000 22 Accounts Receivable 10,800 22.40 11,200 10 500 800 21.50 17,200 Sales 10,800 7,740 9,460 22 360 21.50 440 21.50 22 Cost of Merchandise Sold 7,740 240 28 21.50 5,160 200 21.50 4,300 Merchandise Inventory 7,740 23.30 13,980 30 600 800 22.85 18,280 Balances 31 26,900 800 22.85 18,280 28 Accounts Receivable 7,200 Sales 7,200 28 Cost of Merchandise Sold 5,160 Cost of January 31 inventory Merchandise Inventory 5,160 merchandise sold 30 Merchandise Inventory Accounts Payable 13,980 13,980 ->
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