Question

Dec. 1	Beginning merchandise inventory	20	tires @	$66	each
11	Purchase	8	tires @	$73	each
23	Sale	15	tires @	$87	each
26	Purchase	13	tires @	$84	each
29	Sale	15	tires @	$87	each

Requirement 3. Compute cost of goods sold and gross profit using the​ weighted-average inventory costing method.​ (Round weighted average cost per unit to the nearest cent and all other amounts to the nearest​ dollar.)

Begin by computing the cost of goods sold and cost of ending merchandise inventory using the​ weighted-average inventory costing method. Enter the transactions in chronological​ order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual​ record, calculate the quantity and total cost of merchandise inventory​ purchased, sold, and on hand at the end of the period.

	Purchases			Cost of Goods Sold			Inventory on Hand
		Unit	Total		Unit	Total		Unit	Total
Date	Quantity	Cost	Cost	Quantity	Cost	Cost	Quantity	Cost	Cost
Dec. 1
11
23
26
29
Totals

Answer 1

egin by computing the cost of goods sold and cost of ending merchandise inventory using the​ weighted-average inventory costing method. Enter the transactions in chronological​ order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual​ record, calculate the quantity and total cost of merchandise inventory​purchased, sold, and on hand at the end of the period.

	Purchases			Cost of Goods Sold			Inventory on Hand
		Unit	Total		Unit	Total		Unit	Total
Date	Quantity	Cost	Cost	Quantity	Cost	Cost	Quantity	Cost	Cost
Dec. 1							20	66	1320
11	8	73	584				28	68	1904
23				15	68	1020	13	68	884
26	13	84	1092				26	76	1976
29				15	76	1140	11	76	836
Total						2160			836

Cost of goods sold = $2160

Ending inventory = $836