inventory methods (LO6-3, 6-4, 6-5) [The following information applies to the questions displayed below.] Pete's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Pete's Tennis Shop uses a periodic inventory system. Unit Cost Transactions Beginning inventory Sale ($125 each) Purchase Sale ($140 each) Purchase Sale ($150 each) Purchase Date Units Total Cost August 1 8 $140 $ 1,120 August 4 August 11 August 13 August 20 August 26 August 29 10 130 1,300 10 120 1,200 11 1,100 2$ 4,720 10 110
inventory methods (LO6-3, 6-4, 6-5) [The following information applies to the questions displayed below.] Pete's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Pete's Tennis Shop uses a periodic inventory system. Unit Cost Transactions Beginning inventory Sale ($125 each) Purchase Sale ($140 each) Purchase Sale ($150 each) Purchase Date Units Total Cost August 1 8 $140 $ 1,120 August 4 August 11 August 13 August 20 August 26 August 29 10 130 1,300 10 120 1,200 11 1,100 2$ 4,720 10 110
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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![inventory methods (LO6-3, 6-4, 6-5)
[The following information applies to the questions displayed below.]
Pete's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August.
Pete's Tennis Shop uses a periodic inventory system.
Date
Transactions
Units
Unit Cost
Total Cost
Beginning
inventory
Sale ($125 each)
Purchase
August 1
8.
$140
$
1,120
August 4
August 11
August 13
August 20
August 26
August 29
130
1,300
10
8
Sale ($140 each)
Purchase
Sale ($150 each)
Purchase
120
10
11
1,200
1,100
$
10
110
4,720
For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale
consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory
and 10 rackets from the August 20 purchase.
Problem 6-2B Part 4
4. Using weighted-average cost, calculate ending inventory and cost of goods sold at August 31. (Round your intermediate and final
answers to 2 decimal places.)
Ending inventory
Cost of goods sold](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc35bfef-1e1d-4e62-a745-481127990680%2F2f95c770-4f64-4dfe-aa91-67556445e7ed%2Ftqv5j4r_processed.png&w=3840&q=75)
Transcribed Image Text:inventory methods (LO6-3, 6-4, 6-5)
[The following information applies to the questions displayed below.]
Pete's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August.
Pete's Tennis Shop uses a periodic inventory system.
Date
Transactions
Units
Unit Cost
Total Cost
Beginning
inventory
Sale ($125 each)
Purchase
August 1
8.
$140
$
1,120
August 4
August 11
August 13
August 20
August 26
August 29
130
1,300
10
8
Sale ($140 each)
Purchase
Sale ($150 each)
Purchase
120
10
11
1,200
1,100
$
10
110
4,720
For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale
consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory
and 10 rackets from the August 20 purchase.
Problem 6-2B Part 4
4. Using weighted-average cost, calculate ending inventory and cost of goods sold at August 31. (Round your intermediate and final
answers to 2 decimal places.)
Ending inventory
Cost of goods sold
Expert Solution
Concept
Concept:
Under weighted average cost method using periodic inventory system, value of ending inventory and cost of goods sold is calculated on the basis of a weighted average cost. Such cost is calculated by dividing the aggregate cost of units in the beginning inventory and cost units purchased during the period by the aggregate number of units in the beginning inventory and units purchased during the period.
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