P.B. Inventory Costing Methods-Periodic Method The Shiloh Company uses the perio

Question

P.B. Inventory Costing Methods-Periodic Method The Shiloh Company uses the periodic inventory sys- LO tem for its merchandise inventory. The June 1 inventory for one of the items in the merchandise inven- tory consisted of 60 units with a unit cost of $45. Transactions for this item during June were as follows: June 5 Purchased 40 units @ $50 per unit. 13 Sold 50 units @ $95 per unit. 25 Purchased 30 units @ $53 per unit. 29 Sold 20 units@$100 per unit. Required d Compute the cost of goods sold and the ending inventory cost for the month of June using the weighted-average cost method. Round the cost per unit to 3 decimal places and round your final answers to the nearest dollar.

Explanation / Answer

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b.

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Weighted Average Date Details Units Price Value June.1 Beg. A 60 45.000 2700 June.5 Purchase B 40 50.000 2000 June.25 Purchase C 30 53.000 1590 Inventory available(A+B+C) D 130 48.385 6290 Sales: June.13 Sale E 50 June.29 Sale F 20 Total Sales (E+F) G 70 Ending Inventory H 60 48.385 2903 Cost of goods sold (D-H) I 70 48.385 3387 * Ending inventory is valued at the weighted average price Weighted average price = 6,290 / 130 = $48.385

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