Question

Gulf haven carries an inventory of putters and other golf clubs. The sales price of each putter is $151. Company records indicate the following for a particular line of Golf Haven putters: Requirement 1. Prepare Golf Haven perpetual inventory record for the putters assuming Golf Haven uses the weighted-average inventory costing method. Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar. Then identify the cost of ending inventory and cost of goods sold for the month

Jun. 1 Balance 17       $68

6 Sale 7

8 Purchase 20      74

17 Sale 20

30 Sale 6

Answer 1

Weighted average method Ending inventory Cost per unit Total cost Units sold Cost per unit Total cost Units Cost per unitTotal cost Purchases Cost of goods sold Date Units June 1 (Beg. Bal.) June 6 June 8 $ 68 S1,156 S 680 17 $ 68 $ 68 $ 68 7 S476 10 $ 74 S 680 S 1,480 20 10 $74 S1,480 20 $72.00 $2,160 30 June 17 June 30 Total $ 72.00 S 1,440 $ 72.00 20 10 720 $ 288 $432 $72.00 $72.00 4 S2,348 33 $288