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10 March, 03:57

Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for WCS12 are as follows: Oct. 1 Inventory 320 units at $10 13 Sale 180 units 22 Purchase 360 units at $12 29 Sale 300 units a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places. $ per unit b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your "average unit cost" to two decimal places. $ c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places. $ PreviousNext

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  1. 10 March, 04:38
    0
    a. $11

    b. $3,300

    c. $2,200

    Explanation:

    a. The computation of the weighted average unit cost after the October 22 purchase is shown below:

    = Beginning units - sales units + purchased units

    = 320 units - 180 units + 360 units

    = 180 units + 360 units

    = 540 units

    And, the weighted average unit cost equals to

    = (Beginning units price + purchase units price) : 2

    = ($10 + $12) : 2

    = $11

    b. The computation of the cost of goods sold is shown below:

    = Weighted average unit cost * October 29 units

    = $11 * 300 units

    = $3,300

    c. The computation of the ending inventory is shown below:

    = (Beginning units - sales units + purchased units - sales units) * Weighted average unit cost

    = (320 units - 180 units + 360 units - 300 units) * $11

    = 200 units * $11

    = $2,200
  2. 10 March, 04:45
    0
    a. The weighted average unit cost after the October 22 purchase: $11.44

    b. The cost of goods sold on October 29: $3,432

    c. The ending inventory on October: $2,288

    Explanation:

    a. The weighted average unit cost after the October 22 purchase:

    We have the total inventory units after 22 October purchase = Opening inventory - Sales on the 13 + Purchase on the date = 320 - 180 + 360 = 500 units;

    The weighted average unit cost = (Value of inventory before the purchase + value of inventory of the purchase) / Total inventory units after purchase

    in which: Value of inventory before the purchase = (320-180) * 10 = $1,400

    Value of inventory of the purchase = 12 * 360 = $4,320

    => The weighted average unit cost = (1,400 + 4,320) / 500 = $11.44

    b. The cost of goods sold on October 29

    Units sold * weighted average unit cost = 300 * 11.44 = $3,432

    c. Ending inventory:

    Ending units * weighted average unit cost = (the total inventory units after 22 October purchase - units sold on 29 October) * weighted average unit cost = (500 - 300) * 11.44 = $2,288.
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