Question

The following transactions occurred for the month of May. Date 1-May Beginning Balance 2-May Purchase 3-May Purchase 10-May Sale 15-May Purchase 17-May Sale 30-May Sale Units Cost Total Sales Price 75 10 $750 60 11 $660 80 16 $1,280 $40 19 $855 60 $40 40 $40 Calculate the cost of Goods Sold, Ending inventory, and Gross Profit for the month under Weighted Averages. Do not round the unit cost. Do round total costs to the nearest cent on each transaction. End of the month totals Cost of Goods Sold $C Ending Inventory $ Gross Profit "

Answer 1

Ans.	Cost of goods sold	$3,031
	Ending inventory	$514
	Gross profit	$5,969
	*Calculations for Cost of goods sold and Ending inventory:
	Weighted Average
	Purchase	Cost of goods sold	Balance
	Date	Quantity	Rate	Total cost	Quantity	Rate	Total cost	Quantity	Rate	Total cost
	01-May	75	$10.00	$750				75	$10.00000	$750
	02-May	60	$11.00	$660				135	$10.44444	$1,410
	03-May	80	$16.00	$1,280				215	$12.51163	$2,690
	10-May				125	$12.51163	$1,564	90	$12.51163	$1,126
	15-May	45	$19.00	$855				135	$14.67442	1981
	17-May				60	$14.67442	$880	75	$14.67442	$1,101
	30-May				40	$14.67442	$587	35	$14.67442	$514
	Total				Cost of goods sold		$3,031	Ending inventory	$514
	*Weighted average rate is calculated by using the formula of (Total available balance / Total units available).
	*Calculations for Gross Profit:
			Amount
	Sales		$9,000
	(-) Cost of goods sold		-$3,031
	Gross Profit		$5,969
	*Calculation of sales:
	Date	Units	Rate	Cost
	10-May	125	$40.00	$5,000
	17-May	60	$40.00	$2,400
	30-May	40	$40.00	$1,600
	Total sales			$9,000