Question

ABC Company employs a periodic inventory system and sells its inventory to
customers for $23 per unit. ABC Company reported the following inventory
information for the month of May:

May 1    Beginning inventory 4,200 units @ $9 cost per unit
May 6    Purchased 2,000 units @ $12 cost per unit
May 8    Sold 3,000 units
May 13   Purchased 4,000 units @ $8 cost per unit
May 18   Sold 2,100 units
May 21   Purchased 2,500 units @ $6 cost per unit
May 28   Sold 2,200 units
May 30   Purchased 2,300 units @ $17 cost per unit

ABC Company reported operating expenses of $26,100 for May and they had a
tax rate of 43%.

Calculate the amount of gross profit shown on ABC Company's income statement
for May using the weighted average method.

Answer 1

solutions under weighted average calculate cost of goods sold periodic inventory system & Cost tonits 1200 2000 Beginning inventory purchase may 6 purchase may 13 purchase may 21 purchase may 30 2000 420019 = 37800 2000 712 = 2400 LOUD X 8 = 32000 2500x 6 = 15000 2300X 17- 39100 2300 Total Isovo 147900 weight average cost per unit = 147900 ( SOOD = 9.8 per unit cost of goods sold = (3000 + 2100 +2200) & 9.8 = 71suo Sales = (3000 +2100+ 2200)x23 = 167900 Gooss profit = 167900_71540 = $96360