Question

Perpetual Inventory Using Weighted Average

Beginning inventory, purchases, and sales for WCS12 are as follows:

Oct. 1		Inventory	320 units at $10
13		Sale	180 units
22		Purchase	360 units at $12
29		Sale	300 units

a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places.
$ per unit

b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your "average unit cost" to two decimal places.
$

c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places.

Answer 1

	Available for sale			Cost of goods sold			Ending Inventory
Date	Units	Unit cost	Total Cost	Units	Unit cost	Total Cost	Units	Unit Cost	Total Cost
Oct-01							320	10	3,200
Oct-13				180	10	1,800	140	10	1,400
Oct-22	360	12	4,320				500	11.44	5,720
Oct-29				300	11.44	3,432	200	11.44	2,288

a.

weighted average unit cost after the October 22 purchase = $11.44

b.

cost of goods sold on October 29 = $3,432

c.

inventory on October 31 = $2,288

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