Question

Coggin Company sells many products. Printers are one of its most popular items. Below is an analysis of the inventory purchases and sales of printers for the month of May. Coggin Company uses the perpetual inventory system. Coggin is located in Madrid, Spain.

Inventory Coggin Company sells many products. Printers are one of its most popular items. Below is an analysis of the inventory purchases and sales of printers for the month of May. Coggin Company uses the perpetual inventory system. Coggin is.located in Madrid, Spain. Purchases Sales Unit Cost €33 Unit Price Units Beginning Inventory 100 60 Units 3/1 Purchase 3/3 32.50 3/4 Sales 70 €50 Sales Return 50 3/5 (10) 3/10 Purchase 200 36 (2) 36 3/11 Purchase Return 3/16 Sales 55 80 Sales 55 3/19 60 3/25 Sales 70 56 Purchase 37.50 3/30 40 Instructions 1. Using Moving Average assumption, calculate the amount charged to cost of goods sold for May. (Show your work). (10 points) 2. Calculate Gross Profit (10 points) 3. Calculate the value of the Ending Inventory. (5 points)

Answer 1

50 WEIGHTED AVERAGE METHOD Go urcha Cost of Goods Sold lante TOcice Total - Units NO Units Unit May 53 No 54 100 33.00 3,300.00 55 56 60 6 160 6 32.50 1,950.00 5.250.00 32.81 57 9o 32.81 70 32.81 2,296.88 € 2,953.13 59 -10 32.81 32.81 3,281.25 100 We calculated 32.8125 per unit by 5250/160 units. To pet 5250 Add opening balance and units purchaseed 3300 + 1950 60 -328.13 61 62 300 e 36.00 7,200.00 34.94 10,481.25 200 10 63 -2 36.00 € 298 34.93 11 -72.00 10,409.25 65 80 34.93 C2,794.43 218 66 16 34.93 C7,614.83 67 158 68 69 60 4 34.93 2,095.82 34.93 5,519.00 19 70 0 88 C 34.93 C 3,073.88 34,93 C2,445.13 70 25 71 40 37.50 C 1,500.00 128 35.73 4,573.88 | (Value of Ending Inventory) 31 73 74 Total 70 C9.304.13 75

A B C D Sales 1 2 Date Unit Price Total 70 € -10 € 80 € 60 € 70 € 50 € 50 € 55 € 55 € 56 € € 4 € 5 € 16€ 19 € 25 € 3 3,500 4 -500 5 4,400 6 3,300 7 3,920 8 Total 14,620 9 10 Gross Profit 11 Gross Profit Sales Cost of Goods Sold 14,620 9,304 12 Gross Proft €5,316 13 14 Ln LON