Question

Required information The following information applies to the questions displayed below. Greg's Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system. Units 20 Unit Coat $ 205 Total Cost $ 4,100 10 Date March 1 March 5 March 9 March 17 March 22 March 27 March 20 2,250 Transactions Deginning inventory Sale ($310 each) Purchase Sale ($360 each) Purchase Sale ($385 each) Purchase 225 235 2,350 255 2.295 $10,995 4. Using weighted average cost, calculate ending inventory and cost of goods sold at March 31. (Round your intermediate and final answers to 2 decimal places.) Ending inventory Cost of goods sold

Answer 1

Solution

	Weighted Average
Ending Inventory	$       3,141.46
Cost of Goods Sold	$       7,853.54

Working

Weighted Average method
Total Units Available for sale		49
Units Sold		35
Closing Stock in Units		14
Valuation
Ending Inventory	14	@	$           224.39	$              3,141
Value Of Ending Inventory				$              3,141
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$              7,854

.

	Units	Cost per unit	value
Beginning Balance	20	$                 205.00	$ 4,100
Purchases
	10	$                 225.00	$ 2,250
	10	$                 235.00	$ 2,350
	9	$                 255.00	$ 2,295
Total	49		$ 10,995

.

Average Cost of Inventory
Units	(A)	49
Total Cost	(B)	$ 10,995
Average Cost	(C=B/A)	$                 224.39