Question

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 340 units. Ending inventory at January 31 totals 140 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Units 310 70 100 Unit Cost $ 2.90 3.10 3.24 Required: Assume the perpetual inventory system is used. 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 Date # of Cost per units unit # of units sold Cost of Goods Sold Cost per Cost of Goods unit Sold Inventory Balance # of units Cost per Inventory unit Balance 310 @ $ 2.90 = $ 899.00 January 1 January 9 Average cost $ 0.00 January 25 Average cost January 26 Totals

Answer 1

Weighted Average - Perpetual: Goods Purchsed Inventory Balance Cost of Goods sold Cost of Cost per unit goods sold Date units | Cost per unit units Jan-01 Beginning inventory Jan-09 Purchases Cost per unit 2.90 2.90 3.10 70 @ 3.10 @ @ @ @ units 310 310 70 380 380 100 480 140 Average cost Jan-25 Purchase 2.94 Inventory Balance 899.00 899.00 217.00 1116.00 1116.00 324.001 1440.00 420.00 420.00 100 @ 3.24 2.94 3.24 3.00 3.00 @ @ @ Average cost Jan-26 Totals 340 @ 3.00 1020.00 1020.00