QS 5-12 Perpetual: Inventory costing with weighted average LO P1 Trey Monson sta

Question

QS 5-12 Perpetual: Inventory costing with weighted average LO P1 Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases: Purchases on December 7 Purchases on December 14 Purchases on December 21 20 units @ $14.00 cost 36 units @ $21.00 cost 30 units @ $25.00 cost Required: Monson sells 30 units for $35 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per unit costs to 2 decimal places.) Weighted Average - Perpetual: Goods purchased Inventory Balance # of Cost per Cost of Goods Sold # of Cost of units unit Goods Sold sold # of units Date Cost per Inventory unit Value units Cost per # of units Cost per Inventory unit Balance December 7 20 @ 14.00 E 280.00 20 @ $ 14.00 = $ 280.00 December 14 Average cost December 15 $ 18.50 = December 21 Average cost Totals

Explanation / Answer

Answer:-

Weighted Average- Perpetual Goods purchased Cost of goods sold Inventory balance Date # of units Cost per unit # of units sold Cost per unit Cost of goods sold # of units Cost per unit Inventory balance Dec-07 20 14 20 14 280 Dec-14 36 21 20 14 280 36 21 756 Average cost 56 18.50 1036 Dec-15 30 18.5 555 26 18.50 481.00 Dec-21 30 25 26 18.5 481 30 25 750 Average cost 56 22.0 1231.00 Totals 555

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