Question

# Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item...

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 30,000 units at \$30.00 Mar. 18 Sale 24,000 units May 2 Purchase 54,000 units at \$31.00 Aug. 9 Sale 45,000 units Oct. 20 Purchase 21,000 units at \$32.10

The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Round unit cost to two decimal places, if necessary.

 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT \$ UNITS RATE AMOUNT \$ UNITS RATE AMOUNT \$ 01-Jan 30000 30 900000 18-Mar 24000 30 720000 6000 30 180000 02-May 54000 31 1674000 6000 30 180000 54000 31 1674000 Average 60000 30.9 1854000 09-Aug 45000 30.9 1390500 15000 30.9 463500 20-Oct 21000 32.1 674100 15000 30.9 463500 21000 32.1 674100 AVERAGE 36000 31.6 1137600 TOTAL 75000 2348100 69000 2110500 36000 31.6 1137600 Cost of goods sold 21,10,500 Cost of Ending inventory 11,37,600

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