I honestly need help on FIFO, LIFO, weighted average, and specific method on these chapter 7 questions. The following transactions occurred for the month of May.  Date  UnitsCostTotalSales Price1-MayBeginning Balance6513$845 2-MayPurchase 7514$1,050 3-MayPurchase 7016$1,120 10-MaySale 100  $3015-MayPurchase 4017$680 17-MaySale 45  $3030-MaySale 100  $30 Calculate the Cost of Goods Sold, Ending inventory, and Gross Profit for the month under Weighted Averages.   Do not round the unit cost.  Do round total costs to the nearest cent on each transaction.End of the month totalsCost of Goods Sold$Ending Inventory$Gross Profit$

Question
Asked Feb 25, 2019
39 views

I honestly need help on FIFO, LIFO, weighted average, and specific method on these chapter 7 questions. 

The following transactions occurred for the month of May. 

 Date    Units Cost Total Sales Price
1-May Beginning Balance 65 13 $845  
2-May Purchase  75 14 $1,050  
3-May Purchase  70 16 $1,120  
10-May Sale  100     $30
15-May Purchase  40 17 $680  
17-May Sale  45     $30
30-May Sale  100     $30

 

Calculate the Cost of Goods Sold, Ending inventory, and Gross Profit for the month under Weighted Averages.   Do not round the unit cost.  Do round total costs to the nearest cent on each transaction.

End of the month totals

Cost of Goods Sold $
Ending Inventory $
Gross Profit $
check_circle

Expert Answer

star
star
star
star
star
1 Rating
Step 1

Weighted Average method is used to calculate COGS (Cost of goods sold) and inventory when it is difficult to identify the track of LIFO or FIFO inventory layers.

While using the weighted average method, divide the total cost of good available for sale by the total number of units available for sale, which provides the weighted-average cost per unit. To calculate the cost of goods available for sale the sum of beginning inventory is taken along with net purchases. Weighted-average figure can be used to assign a cost to both ending inventory and the cost of goods sold.

Step 2

Cost of goods sold= 1,435.71+2,183.97

                                = $ 3619.68

Gross Profit= Sales - Cogs

   &nb...

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: I am lost on this problem, I tried using the 'Show me how' video but I don't understand it at all. H...

A: Since we only answer upto 3 sub-parts, we'll answer the first 3. Please resubmit the question and sp...

question_answer

Q: Weighted-average costs per equivalent unit are $2 for direct materials and $3 for conversion. There ...

A: Cost of the goods completed:Cost of goods completed represents the total cost incurred for the mater...

question_answer

Q: Calculate activity measures The following information was available for the year ended December 31, ...

A: Inventory turnover: Inventory Turnover Ratio measures the company’s ability to sell its inventory, i...

question_answer

Q: Problem 12-3Information concerning Marigold Corporation’s intangible assets is as follows. 1. On Jan...

A: The amount of franchise fees to be capitalised is Initial fees on signing  -  $16,000Add :Present Va...

question_answer

Q: eBook Calculator Print Item Five Measures of Solvency or Profitability The balance sheet for Garcon ...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

question_answer

Q: On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as i...

A: First of all we will start by calculating the rate or capitalization.For specific borrowings we will...

question_answer

Q: What does the concept "substance over form" stand for?  Can you provide me with some examples?

A: Substance over form: It is an accounting concept, which means that the business must record those tr...

question_answer

Q: Betty Boop started a small toy factory, Boopy Doop, Inc., in her garage and incorporated it in March...

A: Depreciation: Depreciation is an amount of reduction in the worth of a fixed asset during its useful...

question_answer

Q: AT SUGEY CIRCUS at jUNE 30 curren year has account payable....$31,320 accounts receivble 8,940 anima...

A: Balance Sheet The balance sheet is one of the financial statements prepared at the end of the financ...