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 Per Unit Total of Units 25 75 40 $1,200 1,240 2,000 2,000 1,260 2,000 2,000 1,260 2,250 2,250 1,264 2,250 $30,000 93,000 80,000 60,000 75,600 100,000 40,000 100,800 90,000 56,250 44,240 99,000 Apr. 3 Inventory 8 Purchase 11 Sale 30 Sale May 8 Purchase 10 Sale 19 Sale 60 20 80 40 25 35 28 Purchase June 5 Sale 16 Sale 21 Purchase 28 Sale

Explanation / Answer

Weighted average cost method :

Cost of goods sold = $310854

Ending inventory = $32786

Purchases Cost of goods 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 June 5 40 1258 50320 60 1258 75480 June 16 25 1258 31450 35 1258 44030 June 21 35 1264 44240 70 1261 88270 June 28 44 1261 55484 26 1261 32786 Total 310854 32786

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