WEIGHTED AVERAGE METHOD:- Date Issues Balance Qty Pice Value Otr Price Value Qty
ID: 2330066 • Letter: W
Question
WEIGHTED AVERAGE METHOD:- Date Issues Balance Qty Pice Value Otr Price Value Qty Price Value 20 2.00 40.00 20 2.00 40.00 Feb 5 2.00 10.00 15 2.00 30.00 Mar 5 220 11.00 20 205 41.00 15 205 30.75 205 10.25 Apr 10 2.50 25.00 15 2.35 35 25 Jun 4 2.35 9.40 11 2.35 25.85 Aug 26 249 64.74 Sep 15 2.60 39.00 5 249 12.4 21 2.49 52.20 10 249 24.90 11 250 27.39 3 2.50 7.508 2.50 19.92 42 94.97 Oct Now Dec The unit prices in the issues and balances columns are weighted averages. With this method, the Gross profit calculation would be:-Explanation / Answer
SOLUTION:
Cost of sales:
Units Price Value
Sales 5 2 10.00
15 2.05 30.75
4 2.35 9.40
5 2.49 12.45
10 2.49 24.90
3 2.5 7.50
42 94.97
Sales: 42 units * $6 = 252
Gross profit = 252 - 94.97 = 157.03
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