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 4,000 units at \$20 Apr. 19 Sale 2,500 units June 30 Purchase 6,000 units at \$24 Sept. 2 Sale 4,500 units Nov. 15 Purchase 1,000 units at \$25

The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods 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.

Schedule of Cost of Goods Sold
Weighted Average Cost Flow Method
Purchases Cost of Goods Sold Inventory
Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost
Jan. 1 \$ \$
Apr. 19 \$ \$
June 30 \$ \$
Sept. 2
Nov. 15
Dec. 31 Balances \$ \$ \$

Solution:

 Schedule of cost of goods sold Weighted Average cost flow method Date Purchases Cost of Goods sold Inventory Qty Unit cost Total Cost Qty Unit cost Total Cost Qty Unit cost Total Cost 01-Jan 0 \$0.00 \$0 0 \$0.00 \$0 4000 \$20.00 \$80,000 19-Apr 0 \$0.00 \$0 2500 \$20.00 \$50,000 1500 \$20.00 \$30,000 30-Jun 6000 \$24.00 \$1,44,000 0 \$0.00 \$0 7500 \$23.20 \$1,74,000 02-Sep 0 \$0.00 \$0 4500 \$23.20 \$1,04,400 3000 \$23.20 \$69,600 15-Nov 1000 \$25.00 \$25,000 0 \$0.00 \$0 4000 \$23.65 \$94,600 Dec-31 Balances 7000 \$1,54,400 4000 23.65 \$94,600

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