Question

Glassworks Ltd. uses the periodic inventory system. Calculate Glassworks’ cost of goods sold, gross margin, and...

Glassworks Ltd. uses the periodic inventory system. Calculate Glassworks’ cost of goods sold, gross margin, and ending inventory for the month of July using weighted average. All of the units sold were priced at $20 per unit.

Units Cost/Unit Amount

July 1

Beginning inventory

4,000 $12.00 $48,000

4

Purchase

6,000 $12.50 75,000

8

Sale

6,590

14

Sale

1,410

22

Purchase

5,000 $12.75 63,750

28

Sale

2,960

Homework Answers

Answer #1
Units Cost/Unit Total cost
July 1 4000 12.00 48000
July 4 6000 12.50 75000
July 22 5000 12.75 63750
Total 15000 186750
Average cost per unit 12.45 =186750/15000
Total units sold 10960 =6590+1410+2960
Ending inventory units 4040 =15000-10960
1
Cost of goods sold 136452 =10960*12.45
2
Sales revenue 219200 =10960*20
Less: Cost of goods sold 136452
Gross margin 82748
3
Ending inventory 50298 =4040*12.45
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