Question

D. INVENTORY COSTING METHODS (11 Marks) Mana Company uses the perpetual inventory system and the weighted average cost formula. The following information is available for the month of June: Date Explanation Units Unit Cost Jun 1 Beginning Inventory 200 S 10 Jun 15 Purchase 300 Jun 17 Sale 250 Jun 24 Purchase 400 12 11 Instructions Prepare a schedule to show cost of goods sold and the value of the ending inventory for the month of June. Scar ned with CamScanner

Answer 1

Weighted Average Cost Cost of Goods Sold Quantity Unit Cost Total Cost Purchases Unit Cost Date Total Cost 300 $ 11.00 $ 3,300 June 01 June 15 June 17 June 24 Balance Inventory Balance Quantity Unit Cost Total Cost 200 $ 10.00 $ 2,000 500 $ 10.60 $ 5,300 250 $ 10.60 $ 2,650 650 $ 11.46 $ 7,450 650 $ 7,450 250 $ 10.60 $ 2,650 400 $ 12.00 $ 4,800 $ 2,650 Cost of Goods Sold = $2,650 Ending Inventory = $7,450