Question

Inventory Costing Methods and the Perpetual Method Mckay & Company experienced the following events in March: Date Event Units Unit Cost Total Cost Mar.1 Purchased inventory 100 $35 $3,500 Mar. 3 Sold inventory entory 60 Mar. 15 Purchased inventory 100 $38 $3,800 Mar. 20 Sold inventory 40 Assume the perpetual inventory system is used. Use the weighted average inventory costing method to calculate the company's cost of goods sold and ending inventory as of March 31. Round weighted average cost per unit to two decimal places. Use rounded answer for subsequent calculations. Round all other answers to the nearest dollar. March 3 Cost of goods sold March 20 Weighted average cost per units Cost of goods sold March 31 Total cost of goods sold Ending inventory

Answer 1

Solution:

	# of Units	Cost per unit	Amount
March 3:
Cost of goods sold	60	$35.00	$2,100
March 20:
March-1, Remaining Inventory	40	$35.00	$1,400
March -15, Purchased Inventory	100	$38.00	$3,800
Weighted-Average cost per unti	140	$37.14	$5,200
Cost of goods sold	40	$37.14	$1,486
March 31:
Total Cost of goods sold			$3,586
Ending Inventory	100	$37.14	$3,714