Question

# Coronado Department Store uses a perpetual inventory system. Data for product E2-D2 include the following purchases....

Coronado Department Store uses a perpetual inventory system. Data for product E2-D2 include the following purchases.

 Date Number of Units Unit Price May 7 50 \$17 July 28 30 22

On June 1, Coronado sold 20 units, and on August 27, 40 more units.

Prepare the perpetual inventory schedule for the above transactions using moving-average cost. (Round average-cost per unit to 2 decimal places, e.g. 12.50 and final answers to 0 decimal places, e.g. 1,250.)

 Product E2-D2 Date Purchases Cost of Goods Sold Balance May 7 \$ \$ \$ June 1 \$ \$ \$ July 28 \$ \$ \$ Aug. 27 \$ \$ \$

PERPETUAL INVENTORY SCHEDULE USING MOVING-AVERAGE COST

 Date Purchases Cost of goods sold Balance May 7 \$850 - \$850 June 1 - \$340 \$510 July 28 \$660 - \$1,170 Aug 27 - \$780 \$390

Computation:

 Date Purchases Cost of goods sold Balance May 7 50 units * \$17 = \$850 - \$850 June 1 - 20 units * \$17 = \$340 \$850 - \$340 = \$510 July 28 30 units * \$22 = \$660 - \$510 + \$660 = \$1,170 Aug 27 - 40 units * (\$1,170 / 60 units) = 40 units * \$19.50 = \$780 \$1,170 - \$780 = \$390

All the best...

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