Question

Required information Use the following information for the Quick Study below. Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 30 units for $50 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 20 units @ $20.00 cost 34 units @ $30.00 cost 30 units @ $36.00 cost QS 5-12 Perpetual: Inventory costing with weighted average LO P1 Required: Monson sells 30 units for $50 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per unit costs to 2 decimal places.)

Answer 1

Solution: 20 400 Perpetual Weighted Avg cost: Goods Purchased Cost of Goods Sold Inventory Balance Date # of units Cost per unit units s Cost per unit Cost of Goods Sold of unit Cost per unit Inventory Balance Dec 7. 20 @ 20@ 20 = Dec 14. 34 @ 30 20 @ 20 = 400 34 @ 30 = 1020 Average cost 54 @ 26 = 1420 Dec 15. 30 @ 26 = 78924 @ 26 = 631 Dec 21. 301@ 36 |24| @ 26 =1 631 30 @ 36 = 1080 Average cost 54 @ 32 = 1711 Totals 789