Question

Kingbird has the following inventory data: July 1 Beginning inventory 5 Purchases 14 Sale 21 Purchases 30 Sale 34 units at $68 205 units at $64 137 units 103 units at $66 96 units Assuming that a perpetual inventory system is used, what is ending inventory (rounded) under the average cost method for July? (Round intermediate calculations to 3 decimal places, e.g. 12.531.)

Answer 1

As per perpetual method inventory record when sales from whatever goods available at average coat as per weighted average cost method.

Weighted average Method

Date	Particulars	Receipts			Issues			Balance
		Qty.	Unit Cost	Amount	Qty.	Unit Cost	Amount	Qty.	Unit Cost	Amount
July.1	Inventory	34	$ 68	$ 2,312				34	$ 68	$ 2,312
July, 5	Purchase	205	$ 64	$ 13,120				34	$ 68	$ 2,312
								205	$ 64	$ 13,120
July,14	Sales				137	$ 64.569	$ 8,846	102	$ 64.569	$ 6,586
July,21	Purchase	103	$ 66	$ 6,798				102	$ 64.569	$ 6,586
								103	$ 66	$ 6,798
July,30	Sales				96	$ 62.288	$ 6,268	109	$ 62.288	$ 7,116
	Total	342		$ 22,230	233		$ 15,114	109	$ 62.288	$ 7,116

         On July 14 weighted average cost = Total cost of Goods / Total units

                                                                   = $ 15,432 / 239 units

                                                                   = $ 64.569 per unit

       On July, 30 weighted average cost = Total cost of Goods / Total units

                                                                   = $ 13,384 / 205 units

                                                                   = $ 62.288 per unit