Question Help Cowch Kair\'s Sports, Inc camies a ine of Stanium putters. Keira\'

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Question Help Cowch Kair's Sports, Inc camies a ine of Stanium putters. Keira's Sports, Inc, uses the average cost method and a perpetual inventory system. The sales price of each puther is $180. Company records indicate the fallowing activity for puters for the mornth of Judly (C?ck the icon to view De fecods.) Read the reauirements. gle Requirement 1. Prepare a perpetual inventory necord for the putters on the average cost basis to determine the cost of ending inventory and cost of goods sold for the month. Round average cost per unit to the nearest cent and all other amounts to the nearest dollar Start by entering the beginning inventory belances Enter the trarsactions in chronalogical order, caloulating new inventory on hand balances after each ransaction Once all of the transactions have been entered into the perpetual necond, caloulate the quanity and total oost of inventory purchased, sold, and on hand at the and of Avg Cost Purchases Cost of goods sold Invenbory on hand Unit Tetal Unit Total Date Oty Cont Costty Cost Cost ay Cost Cost Choose from any lst or enter any number in the input fields and then consinue to the next question

Explanation / Answer

Explanation for average costs:

every subsequent purchase alters the preceding average cost. every sale uses the latest average cost to determine the amount of cost of goods sold. July 7 purchase, adds 13 units of stock at 98 per unit, there by, total cost of stock becomes, 846(opening balance) plus 1,274(purchase cost), 2,120. average of it over total units in stock (22) is 96.36. Suqsequent sale uses the above derived average cost.

Same principle applies for the purchase on July 19. stock value on that date is 675 added to it puchase cost of $2,040. By averaging the total inventory value of 2,715 over 27 units, comes 100.56 per unit cost.

Requirement 2:

Journal:

Weighted average Method Periodic Inventory method Purchases Cost of goods sold Closing balance Date Activity Qty Unit cost Total cost Qty Unit cost Total cost Units Per unit Cost Jul.1 Balance          9.00        94.00         846.00                -                  9.00        94.00         846.00 7 Purchase        13.00        98.00      1,274.00                -                22.00        96.36      2,120.00 11 Sales              -                -                    -             15.00           96.36    1,445.00                7.00        96.36         675.00 19 Purchase        20.00     102.00      2,040.00                  -                  -                27.00     100.56      2,715.00 28 Sales              -                -                    -                9.00         100.56       905.00              18.00     100.56      1,810.00 Total           24.00    2,350.00 Particulars Amount Cost of goods available for sale      4,160.00 Cost of goods sold      2,350.00 Closing inventory      1,810.00

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