Question

eBook Show Me How Calculator Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for WCS12 are as follows: Oct. 1 Inventory 320 units at $10 13 Sale 180 units UDUTULITI 22 Purchase 360 units at $12 29 Sale 300 units a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places. per unit b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your "average unit cost to two decimal places. C. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places

Answer 1

Ans. A	Weighted average unit cost (after October 22 purchase)    =   $11.44 per unit
Ans. B	Cost of goods sold on October 29   =   $3,432.
Ans. C	Inventory on October 31   =   $2,288.
	*Working Notes:
	Weighted Average
	Purchase				Cost of goods sold			Balance
	Date	Quantity	Rate	Total cost	Quantity	Rate	Total cost	Quantity	Rate	Total cost
	01-Oct	320	$10.00	$3,200				320	$10.00	$3,200
	13-Oct				180	$10.00	$1,800	140	$10.00	$1,400
	22-Oct	360	$12.00	$4,320				500	$11.44	$5,720
	29-Oct				300	$11.44	$3,432	200	$11.44	$2,288
	Total				Cost of goods sold		$5,232	Ending inventory		$2,288
	*Weighted average rate is calculated by using the formula of (Total available balance / Total units available).
	*Units are sold at the rate on which the inventory balance is available.