Question

Perpetual Inventory Using Weighted Average

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

Oct. 1		Inventory	300 units at $8
13		Sale	175 units
22		Purchase	375 units at $10
29		Sale	280 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 the merchandise 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

A)	particulars			Amount ($)
	Opening inventory (300*8)'			2400
	(-) sales on oct 13	(175*8)		1400
				1000
	(+) purchases (375*10) on oct 22			3750
				4750
	Weighted avg cost			4750/300-175+375
	B) cost of merchandise sold on oct 29 c) c) Inventory on oct 31 opening-sales on oct 13 +purchases on oct 22 - sales on oct 29 300-175+375-280 220 cost of inventory 220*9.5 2090			9.5 =280*9.5 =2660.