Weighted Average Cost Method with Perpetual Inventory The beginning inventory fo

Question

Weighted Average Cost Method with Perpetual Inventory The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are as follows: Number Date Transaction of Units Per Unit Total 25 75 40 30 60 50 20 80 40 25 35 Apr. 3 Inventory $1,200 $30,000 93,000 80,000 60,000 75,600 100,000 40,000 1,260 100,800 90,000 56,250 44,240 99,000 1,240 2,000 2,000 1,260 2,000 2,000 8 Purchase 11 Sale 30 Sale May 8 Purchase 10 Sale 19 Sale 28 Purchase June 5 Sale 16 Sale 21 Purchase 28 Sale 2,250 2,250 1,264 2,250

Explanation / Answer

1.

2.

Total sales = $80000 + 60000 + 100000 + 40000 + 90000 + 56250 + 99000 = $525250

3. Ending inventory cost on June 30: $32786

Dunne Co. Schedule of Cost of Merchandise Sold Weighted Average Cost Method For the three months ended June 30 Purchases Cost of Merchandise Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Apr. 3 25 1200 30000 Apr. 8 75 1240 93000 100 1230 123000 Apr. 11 40 1230 49200 60 1230 73800 Apr. 30 30 1230 36900 30 1230 36900 May. 8 60 1260 75600 90 1250 112500 May. 10 50 1250 62500 40 1250 50000 May. 19 20 1250 25000 20 1250 25000 May. 28 80 1260 100800 100 1258 125800 Jun. 5 40 1258 50320 60 1258 75480 Jun. 16 25 1258 31450 35 1258 44030 Jun. 21 35 1264 44240 70 1261 88270 Jun. 28 44 1261 55484 26 1261 32786 Jun. 30 Balances 310854 32786

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