Question

shown (Click the lcon to view the transactions ) Assume Lowel Distributors uses the moving welghted-average-cost method The company uses a perpetual inventory system Cash payments on account totalled $27,000 Company operating expenses for the month were Required 1. Prepare a petual inventory record at moving-eighted average cost Rand te magudostto te maret oada. ither amount, to nerei dir 2. Prepare a muilsi-step income statement for Lowell Distributors for the morth of May inventory on had More Into UNITS May 10 Purchased 31 units at 534 ventory on Hand 15 Sold 47 units at 65 22 Purchased 74 units at $37 29 Sold 93 units at $75

Answer 1

1)

		Purchase			Cost of Goods Sold			Inventory in Hand
Date		units	price	amount	units	price	amount	units	price	amount
	Opening	44.00	$ 325.00	$ 14,300.00				44.00	$ 325.00	$ 14,300.00
May-10	Purchase	31.00	$ 345.00	$ 10,695.00				31.00	$ 345.00	$ 10,695.00
								75.00	$ 333.27	$ 24,995.00
May-15	Sales				47.00	$ 333.27	$ 15,663.53	28.00	$ 333.27	$    9,331.47
May-22	Purchase	74.00	$ 375.00	$ 27,750.00				28.00	$ 333.27	$    9,331.47
								74.00	$ 375.00	$ 27,750.00
								102.00	$ 363.54	$ 37,081.47
May-29	Sales				93.00	$ 363.54	$ 33,809.57	9.00	$ 363.54	$    3,271.89
	Total				140.00		$ 49,473.10

Sales	$ 100,300.00
Cost of Goods Sold	$    49,473.10
Gross Profit	$    50,826.90
Operating Expense	$    28,000.00
Net income	$    22,826.90