Question

Required information Trey Monson starts a merchandising business on December 1 and enters into three inventory purchases: Purchases on December 7 Purchases on December 14 Purchases on December 21 10 units 20 units 15 units $6.00 cost $12.00 cost $14.00 cost Required: Monson sells 15 units for $20 each on December 15. Assume the periodic inventory system is used. Determine the costs assigned to ending Inventory when costs are assigned based on the weighted average method. (Amounts to be deducted should be indicated with a minus sign. Round cost per units to 2 decimals.) Periodic Weighted Average Inventory on hand Cost per Inventory # of units unit Value Cost of Goods Sold of units Cost per unit Goods Sold sold Purchase - December 7 Purchase - December 14 Purchase - December 21 Available for Sale December Sales Total

Answer 1

Periodic Weighted Average	Inventory on hand			Cost of Goods Sold
	# of units (a)	Cost per unit (b)	Inventory Value (a*b)	# of units sold (d)	Cost per unit (e )	Cost of Goods Sold (d*e)
Purchases - December 7	10	$6	$60
Purchases - December 14	20	$12	$240
Purchases - December 21	15	$14	$210
Available for Sale	45	$11.33	$510
December Sales	15	$11.33	$170	15	$11.33	$170
Total	30	$11.33	$340	15	$11.33	$170
* $510/45 = $11.33