Question

Required information Problem 6-1A Calculate ending inventory and cost of goods sold for four inventory methods (LO6-3) [The following information applies to the questions displayed below.] Sandra's Purse Boutique has the following transactions related to its top-selling Guccipurse for the month of October. Sandra's Purse Boutique uses a periodic inventory system. Date Transactions Units Unit Cost Total Cost October 1 Beginning inventory 6 S800 $4,800 October 4 Sale 4 October 10 Purchase 5 810 4,050 October 13 Sale 3 October 20 Purchase 4 820 3,280 October 28 October 30 Sale 7 Purchase 6 830 4,980 $17,110 Problem 6-1A Part 4 4. Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31. (Round your intermediate and answers to 2 decimal places.) Ending inventory

Answer 1

Solution

	Weighted Average
Ending Inventory	5703.32
Cost of Goods Sold	11406.68

Working

Weighted Average method
Total Units Available for sale		21
Units Sold		14
Closing Stock in Units		7
Valuation
Ending Inventory	7	@	$           814.76	$              5,703
Value Of Ending Inventory				$              5,703
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$            11,407

.

Average Cost of Inventory
Units	(A)	21
Total Cost	(B)	$ 17,110
Average Cost	(C=B/A)	$ 814.76