Weighted Average Cost Flow Method Under Perpetual Inventory SystemThe following units of a particular item were available for sale during the calendar year:Jan. 1Inventory4,000 units at $40Apr. 19Sale2,500 unitsJune 30Purchase4,500 units at $44Sept. 2Sale5,000 unitsNov. 15Purchase2,000 units at $46The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5.Schedule of Cost of Goods SoldWeighted Average Cost Flow Method PurchasesCost of Goods SoldInventoryDateQuantityUnit CostTotal CostQuantityUnit CostTotal CostQuantityUnit CostTotal CostJan. 1         Apr. 19         June 30         Sept. 2         Nov. 15         Dec. 31Balances

Question
Asked Oct 10, 2019
409 views

Weighted Average Cost Flow Method Under Perpetual Inventory System

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

Jan. 1 Inventory 4,000 units at $40
Apr. 19 Sale 2,500 units
June 30 Purchase 4,500 units at $44
Sept. 2 Sale 5,000 units
Nov. 15 Purchase 2,000 units at $46

The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5.

Schedule of Cost of Goods Sold
Weighted Average Cost Flow Method
  Purchases Cost of Goods Sold Inventory
Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost
Jan. 1                  
Apr. 19                  
June 30                  
Sept. 2                  
Nov. 15                  
Dec. 31 Balances                
check_circle

Expert Answer

Step 1

Cost of goods sold and inventory balance, under weighte...

help_outline

Image Transcriptionclose

E F H A B C G 1 Schedule of Cost of Goods Sold 2 Weighted Average Cost Flow Method Cost of Goods Sold Purchases Inventory Unit Total Unit Total Cost QuantityUnit Cost Total Date Quantity Cost 4 Quantity Cost Cost 4000 -H5 15 -H6 16 -H6+B7(J6+D7)/H7| - H7*17 -H8 18 H8+B9- ( J8+D9)/H9 - H9 *19 40 H5-E6 15 5 Jan. 1 -E6 F6 2500 -15 6 Apr. 19 7 June. 30 4500 8 Sept. 2 9 Nov. 15 2000 10 Dec. 31 Balances -B7 C7 5000 44 -H7-E8 - 17 17 -E8 F8 46 B9 C9 =H9 -J9 =I9

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: The direct costs of materials that change with the number of units produced is an example of a fixed...

A: False, the direct cost of materials is not an example of fixed production cost because it is a varia...

question_answer

Q: The accounting records for Delta Driving School shows a cash balance of $14,134 on February 28, 2012...

A: Bank reconciliation:Bank statement is prepared by bank. The company maintains its own records from i...

question_answer

Q: a. A new operating system for an existing machine is expected to cost $710,000 and have a useful lif...

A: a.Compute the net present value of investment “a”. 

question_answer

Q: Kylah Enterprises began the current month with inventory costing $10,000, then purchased inventory a...

A: Perpetual Inventory System is maintained on a continual basis or perpetual record is maintained for ...

question_answer

Q: 10points     Time Remaining 29 minutes 31 seconds 00:29:31     The 2021 income statement for An...

A: 1.Profit margin on sales 0.2413 or 24.13%

question_answer

Q: Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The...

A: 1 and 2 parts of the table is shown below:

question_answer

Q: How to conver a balance sheet to a common size balance sheet

A: Common size Balance is expressed in percentages form. The individual assets are represented as a per...

question_answer

Q: Assume that on September 1, Office Depot had an inventory that included a variety of calculators. Th...

A: Record the journal entries for September transactions as shown below:

question_answer

Q: Accounting Question

A: a.