# The following units of a particular item were available for sale during the calendar year:Jan. 1Inventory30,000units at \$30.00Mar. 18Sale24,000unitsMay 2Purchase54,000units at \$31.00Aug. 9Sale45,000unitsOct. 20Purchase21,000units at \$32.10The 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. Round unit cost to two decimal places, if necessary.Schedule of Cost of Merchandise SoldWeighted Average Cost Flow Method PurchasesCost of Merchandise SoldInventoryDateQuantityUnit CostTotal CostQuantityUnit CostTotal CostQuantityUnit CostTotal CostJan. 1       \$\$Mar. 18    \$\$   May 2 \$\$      Aug. 9         Oct. 20         Dec. 31Balances    \$ \$\$

Question
443 views

The following units of a particular item were available for sale during the calendar year:

 Jan. 1 Inventory 30,000 units at \$30.00 Mar. 18 Sale 24,000 units May 2 Purchase 54,000 units at \$31.00 Aug. 9 Sale 45,000 units Oct. 20 Purchase 21,000 units at \$32.10

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. Round unit cost to two decimal places, if necessary.

Schedule of Cost of Merchandise Sold
Weighted Average Cost Flow Method
Purchases Cost of Merchandise Sold Inventory
Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost
Jan. 1               \$ \$
Mar. 18         \$ \$
May 2   \$ \$
Aug. 9
Oct. 20
Dec. 31 Balances         \$   \$ \$
check_circle

Step 1

Calculate the cost of merchandise sold and ending inventory. (Weighted average method).

Step 2

Working Notes:

(1) Calculate the weighted average unit cost after May 2nd purchase.

Step 3

(2) Calculate the weighted average unit cost aft...

### Want to see the full answer?

See Solution

#### 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