Question

Required Information [The following Information applies to the questions displayed below.) In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 320 units at $6 on January 1, (2) 540 units at $7 on January 8, and (3) 840 units at $9 on January 29. Assume 1,035 units are on hand at the end of the month, calculate the cost of goods available for sale, ending Inventory, and cost of goods sold under the weighted average cost flow assumptions. Assume a periodic Inventory system is used. (Round "Cost per Unit" to 2 decimal places.) Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold Weighted Average Cost $ 13,260 10,335 $ 4,455

Answer 1

Cost of goods available for sale = 320*6+540*7+840*9 = $13260

Weighted average cost per unit = 13260/(320+540+840) = $7.8 per unit

Ending inventory = 1035*7.8 = $8073

Cost of goods sold = 13260-8073 = $5187