Question

View Policies Current Attempt in Progress You have the following information for Waterway Industries for the month ended October 31, 2022. Waterway uses a periodic method for inventory Date Description Units Unit Cost or Selling Price Oct. 1 Beginning inventory $26 70 125 Oct. 9 Purchase Oct. 11 Sale Oct. 17 Purchase Oct. 22 Sale Oct. 25 Purchase Oct. 29 Sale Calculate the weighted average cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted average cost per unit $ Textbook and Media

Answer 1

Correct Answer:

Weighted- Average Cost

$                  28.527

	FIFO	LIFO	Weighted Average
Cost of Goods Sold	$                     7,495	$                     7,895	$                         7,702
Ending Inventory	$                     3,060	$                     2,660	$                         2,853
Cost of Goods Sold	$                     7,495	$                     7,895	$                         7,702
Gross profit	$               4,180.00	$               3,780.00	$                   3,972.70

	FIFO	LIFO	Weighted Average
Gross profit rate	35.8%	32.4%	34.0%

Working:

Cost of Goods Available for sale
	Units	Cost per unit	value
Beginning Inventory	70	$                       26.0	$                     1,820.0
Purchases	125	$                       28.0	$                     3,500.0
Purchases	95	$                       29.0	$                   2,755.00
Purchases	80	$                       31.0	$                     2,480.0
Total	370		$                       10,555

Weighted Average Cost Per unit
Units		(A)	370
Total Cost		(B)	$            10,555.00
Average Cost		(C=B/A)	$                  28.527

	FIFO
A	Total Units Available for sale			370		$               10,555
	Units Sold			270
	Ending Inventory Units			100
	Valuation
	Cost of Goods Sold		70		$                         26.00	$            1,820.00
			125		$                         28.00	$                  3,500
			75		$                         29.00	$            2,175.00
B	Cost of Goods Sold		270	units		$                  7,495
A-B	Ending Inventory		100	units		$              3,060.0

	LIFO
A	Total Units Available for sale			370		$               10,555
	Units Sold			270
	Ending Inventory Units			100
	Valuation
	Cost of Goods Sold		80		$                         31.00	2,480.00
			95		$                         29.00	2,755.00
			95		$                         28.00	2,660.00
B	Cost of Goods Sold		270	units		$            7,895.00
A-B	Ending Inventory		100	units		$            2,660.00

	Weighted Average
A	Total Units Available for sale			370		$         10,555.00
	Units Sold			270
	Ending Inventory Units			100
	Valuation
	Cost of Goods Sold		270		$                       28.527	$            7,702.29
B	Cost of Goods Sold		270	units		$            7,702.29
A-B	Ending Inventory		100	units		$            2,852.71

		FIFO	LIFO	Weighted Average
A	Sales Revenue	$                   11,675.00	$            11,675.00	$    11,675.00
B	Cost of goods sold	$                     7,495.00	$              7,895.00	$      7,702.29
C =A-B	Gross profit	$                     4,180.00	$              3,780.00	$      3,972.71
D =C/A *100	Gross profit rate	35.8%	32.4%	34.0%

End of answer.

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