The following schedule relates to the company's inventory for the month of April. The Company Uses the Perpetual Inventory System. Calculate the Company's Cost of Goods Sold, Gross Margin, and Ending Inventory using Weighted-Average.
April 1: Beginning Inventory 72 Units ---- Total Cost = $42,768
April 3: Purchase 48 Units ---- Total Cost = $29,712
April 5: Sale 27 Units ----Total Cost = $30,483
April 11: Purchase 24 Units ---Total Cost = $15,480
April 15: Sale 56 Units ---Total Cost = $67,312
April 22: Sale 37 Units --- Total Cost = $42,624
April 28: Purchase 48 Units ---Total Cost = $32,736
Weighted Average:
Date | Purchases | COGS | Balance | ||||||
April | Units | Cost per unit | Total Cost | Units | Cost per unit | Total Cost | Units | Cost per unit | Total Cost |
1 | 72 | 594 | 42,768 | ||||||
3 | 48 | 619 | 29,712 | 120 | 604 | 72,480 | |||
5 | 27 | 604 | 16,308 | 93 | 604 | 56,172 | |||
11 | 24 | 645 | 15,480 | 117 | 612.41 | 71,652 | |||
15 | 56 | 612.41 | 34,295 | 61 | 612.41 | 37,357 | |||
22 | 37 | 612.41 | 22,659 | 24 | 612.42 | 14,698 | |||
28 | 48 | 682 | 32,736 | 72 | 658.81 | 47,434 | |||
Total | 120 | 77,928 | 120 | 73,262 | 72 | 47,434 |
Cost of Goods Sold = $73,262
Gross Margin = Gross Margin / Sales * 100
Gross Margin = Sales - Cost of Goods Sold
= (30,483 + 67,312 + 42,624) - 73,262
= 140,419 - 73,262
= $67,157
Gross Margin % = 67,157 / 140,419 * 100
= 47.83%
Ending Inventory = $47,434
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