Question

Weighted average method cost

LIFO Perpetual Inventory The beginning inventory for Dunne Co. and data on purchases and sales for a Number of Units Date Transaction Per Unit Total Apr. 3 Inventory $1,200 8 Purchase 1,240 $30,000 93,000 80,000 60,000 11 Sale 2,000 30 Sale May 8 10 2,000 1,260 2,000 Sale 19 28 June 5 Sale Purchase Sale 2,000 1,260 75,600 100,000 40,000 100,800 90,000 16 Sale 56,250 2,250 252,250 1,264 2,250 21 Purchase 44,240 28 Sale 99,000

Answer 1

ANSWER = 1
WEIGHTED AVERAGE METHOD
		PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
April, 03	Beginning inventory							25	$         1,200	$30,000
April, 05	Purchases	75	$             1,240	$93,000				100	$         1,230	$1,23,000
April, 08	Sales				40	$             1,230	$49,200	60	$         1,230	$73,800
April, 30	Sales				30	$             1,230	$36,900	30	$         1,230	$36,900
May, 08	Purchases	60	$             1,260	$75,600				90	$         1,250	$1,12,500
May, 10	Sales				50	$             1,250	$62,500	40	$         1,250	$50,000
May, 19	Sales				20	$             1,250	$25,000	20	$         1,250	$25,000
May, 28	Purchases	80	$             1,260	$1,00,800				100	$         1,258	$1,25,800
June, 05	Sales				40	$             1,258	$50,320	60	$         1,258	$75,480
June, 16	Sales				25	$             1,258	$31,450	35	$         1,258	$44,030
June, 21	Purchases	35	$             1,264	$44,240				70	$         1,261	$88,270
June, 28	Sales				44	$             1,261	$55,484	26	$         1,261	$32,786
		250		$3,13,640	249		$3,10,854	26		$32,786
ANSWER = 2
	Total Sales
	Sales 140 Units @ $ 2000 =	$          2,80,000
	Sales 109 Units @ $ 2250 =	$          2,45,250
	Total Sales	$          5,25,250
	Less: Cost of Goods Sold	$          3,10,854
	Gross Profit	$          2,14,396
ANSWER = 3
	Ending inventory =	$             32,786