Question

Weighted Average Cost Flow Method Under Perpetual Inventory System

The following units of a particular item were available for sale during the calendar year:

Jan. 1	Inventory	10,000	units at $75.00
Mar. 18	Sale	8,000	units
May 2	Purchase	18,000	units at $77.50
Aug. 9	Sale	15,000	units
Oct. 20	Purchase	7,000	units at $80.25

The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Round unit cost to two decimal places, if necessary.

Schedule of Cost of Goods Sold Weighted Average Cost Flow Method
	Purchases			Cost of Goods Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Jan. 1
Mar. 18
May 2
Aug. 9
Oct. 20
Dec. 31	Balances

Answer 1

Answer 2

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Preparation of Schedule of Cost of Goods Sold Purchases Cost of goods sold - Perpetual Inventory on hand Dates Quantity Cost per unit Total cost Quantity Cost per unit Total cost Quantity Cost per unit Total cost Jan-01 10000 $ 75.00 $ 7,50,000 Mar-18 8000 $ 75.00$ 6,00,000 2000 $ 75.00 $ 1,50,000 May-02 18000 $ 77.50 $ 13,95,000 20000 $ 77.25 $ 15,45,000 Aug-09 15000 $ 77.25 $ 11,58,750 5000 $ 77.25 $ 3,86,250 Oct-20 7000 $ 80.25 $ 5,61,750 12000 $ 79.00 $ 9,48,000 Dec-31/ Totals 25000 $ 19,56,750 23000 $ 17,58,750 12000 $ 9,48,000 * Kindly Comment down for any clarifications/ queries and please upvote.

Answer 3

Preparation of Schedule of Cost of Goods Sold Purchases Cost of goods sold - Perpetual Inventory on hand Dates Quantity Cost per unit Total cost Quantity Cost per unit Total cost Quantity Cost per unit Total cost Jan-01 10000 $ 75.00 $ 7,50,000 Mar-18 8000 $ 75.00$ 6,00,000 2000 $ 75.00 $ 1,50,000 May-02 18000 $ 77.50 $ 13,95,000 20000 $ 77.25 $ 15,45,000 Aug-09 15000 $ 77.25 $ 11,58,750 5000 $ 77.25 $ 3,86,250 Oct-20 7000 $ 80.25 $ 5,61,750 12000 $ 79.00 $ 9,48,000 Dec-31/ Totals 25000 $ 19,56,750 23000 $ 17,58,750 12000 $ 9,48,000 * Kindly Comment down for any clarifications/ queries and please upvote.