Question

8. The periodic inventory records of Canine Veterinary Supply indicate the following for the month of April: (30 Points) Apr. 1 Beginning merchandise inventory 15 units AED 32 each Purchase 7 units AED 34 each 18 Purchase 12 units AED 37 each 26 Purchase 10 units AED 40 each As of April 30, Canine counts 8 units of merchandise inventory on hand. a (10 Pts) Compute ending merchandise inventory. AED b. (20 ) Compute the Cost of Goods Sold for Canine using the weighted average inventory method. (Round the per unit cost to two decimal places.) AED

Answer 1

Rate Value 480.00 32.00 238 Periodic Inventory : Computation of closing units: Date Particulars Units 01-Apr Opening Balance 15.00 07-Apr Purchases 7.00 18-Apr Purchases 12.00 26-Apr Purchases 10.00 Goods available for sales Less: Units Sold Closing Units 34.00 37.00 40.00 400 1,562 Weighted average cost per unit= (1562/44) - AED 35.50 a) Ending merchandise inventory is = (8 units * AED 35.50) - AED 284 b) Cost of goods sold is = (36 units * AED 35.50) - AED 1,278