Question

Chapter Contents AAAN ? BE 6-4 Perpetual Inventory Using Weighted Average Obj. 3 Beginning inventory, purchases, and sales for WCS12 are as follows: Oct. 1 13 22 29 Inventory Sale Purchase Sale 320 units at $10 180 units 360 units at $12 300 units Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase. (b) the cost of goods sold on October 29, and (c) the inventory on October 31. V BE 6.5 Periodic Inventory Ilsing FIFO LIFO and Weighted Avarann net

Answer 1

	Weighted Average	Units Acquired			Cost of Goods Sold			Ending Balance
Date	Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
Oct-01	Beginning Inventory							320	$     10.00	$         3,200
Oct-13	Sales				180	$ 10.00	$    1,800	140	$     10.00	$         1,400
Oct-22	Purchase	360	$            12.00	$            4,320				140	$     10.00	$         1,400
								360	$     12.00	$         4,320
					Average			500	$     11.44	$         5,720
Oct-29	Sales				300	$ 11.44	$    3,432	200	$     11.44	$         2,288
	Total						$    5,232			$         2,288

a. Weighted average cost per unit = $11.44 per unit

b. Cost of Goods Sold on Oct 29 = $3432

c. Inventory on Oct 31 = $2288