Question

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

Oct. 1		Inventory	340 units at $11
13		Sale	200 units
22		Purchase	360 units at $13
29		Sale	200 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

1.

Weighted Average cost per unit = 12.44

Remaing Inventory on october 22 = 340 - 200 + 360 = 500

Cost of purchase = 1 st purchase 11 and remaining unit is 140......2nd purchase cost is 13 and remaning is 360

Weighted Average cost per unit = (140 x 11) + (360 x 13) / 500 = 1540 + 4680 / 500 = 12.44

2.

Cost of goods sold = 4976

Total sale unit = 200 + 200 = 400

Then Cost of goods sold = Total units x Weighted Average cost per unit = 400 x 12.44 = 4976

3.

Ending Inventory = 3732

Total unit in hand on october last = 300 ( 340 - 200 + 360 - 200)

Then Ending Invnetory = Units x Weighted Average cost per unit = 300 x 12.44 = 3732