Weighted Average Cost Flow Method Under Perpetual Inventory System The following

Question

Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for sale during the calendar year: an. nentory Mar. 18 Sale May 2 Purchase Aug. 9 Sale Oct. 20 Purchase The firm uses the wcighted average cost method with a perpetual inventory system. Determine the cost of merchandise sold for cach sale and the inventory balance after cach sale. Present the data in the form illustrated in Exhibit S. Round unit cost to two decimal places, if necessary 30,000 units at $30.00 24,000 units 54,000 units at $31.00 45,000 units 21,000 units at $32.10 Schedule of Cost of Sold Weighted Average Cost Flow Method Cost of Merchandise Sold Purchases Inventory Date Quantity Unit Cost Total Cost Unit Cost Total Cost Quantity Unit Cost Total Cost an. 1 Mar. 18 May 2 Aug. 9 Oct. 20 Dec. 31 Balances

Explanation / Answer

Schedule of cost of goods sold :

Purchases Cost of merchandise sold Inventory Date Quantity Unit cost Total cost Quantity Unit cost Total cost Quantity Unit cost Total cost Jan 1 30000 30 900000 Mar 18 24000 30 720000 6000 30 180000 May 2 54000 31 1674000 60000 30.90 1854000 Aug 9 45000 30.9 1390500 15000 30.9 463500 Oct 20 21000 32.10 674100 36000 31.6 1137600 Total 2110500 1137600

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