v2.cengagenow.com Ch 7-2 Practice Exercises Book Show Me How Calculator Print It
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Question
v2.cengagenow.com Ch 7-2 Practice Exercises Book Show Me How Calculator Print Itemm Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for Meta-B1 are as follows 100 units at $400 70 units 120 units at $450 110 units July 1 Inventory 12 Sale 23 Purchase 26 Sale a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the July 23 purchase per unit b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of the merchandise sold on July 26 c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on July 31 Check My Work 2 more Check My Work uses remaining. Previous Next Assignment Score: 20% All work saved. Save and Exit Submit Assignment for GradingExplanation / Answer
Answer
Working
Units
Cost /Weighted Average cost
Amount
Beginning Balance
100
$ 400.00
$ 40,000.00
Jul 12 Sale
(70)
$ 400.00
$ (28,000.00)
Balance after Sale
30
$ 400.00
$ 12,000.00
Jul 23 Purchases
120
$ 450.00
$ 54,000.00
Balance after Purchases
150
$ 440.00
$ 66,000.00
Jul 26 Sale
(110)
$ 440.00
$ (48,400.00)
Balance after Sale
40
$ 440.00
$ 17,600.00
Answers
Requirement no.
Answer Value
a
$ 440.00
b
$ 48,400.00
c
$ 17,600.00
Requirement ‘a’
Ending Inventory = (15 units x $ 27) + (5 units x $ 26) = $ 535
Requirement ‘b’: Ending Inventory = (10 units x $24) + (10 units x $ 26) = $ 500
Requirement ‘c’:
Working
Total cost $ 1165
Total Units = 45
Weighted Average cost per unit = 1165 / 45 = $ 25.89
Cost of Ending Inventory = 20 units x $ 25.89 = $ 518
Units
Cost /Weighted Average cost
Amount
Beginning Balance
100
$ 400.00
$ 40,000.00
Jul 12 Sale
(70)
$ 400.00
$ (28,000.00)
Balance after Sale
30
$ 400.00
$ 12,000.00
Jul 23 Purchases
120
$ 450.00
$ 54,000.00
Balance after Purchases
150
$ 440.00
$ 66,000.00
Jul 26 Sale
(110)
$ 440.00
$ (48,400.00)
Balance after Sale
40
$ 440.00
$ 17,600.00
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