Question

5-6 Perpetual: Inventory costing with weighted average LO P1 A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 440 units. Ending inventory at January 31 totals 170 units. Units Unit Cost Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 480 $ 3.90 90 4.1e 242 120 4.2e Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per unit costs to 2 decimal places.) Weighted Average Perpetual: Goods purchased Cost of Goods Sold ces Inventory Balance # of # of units Cost per unit Cost per Cost of Goods unit Cost per unit Inventory Balance Date units sold # of units Sold January 1 400@ S 3.90 $1,560.00 January 9 Average cost January 25 Average cost January 26 Totals

Answer 1

STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL AVERAGE METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan							400	3.9	1560
9-Jan	90	4.1	369				400	3.9	1560
							90	4.1	369
Average							490	3.94	1929
25-Jan	120	4.2	504				490	3.94	1929
							120	4.2	504
Average							610	3.99	2433
26-Jan				440	3.99	1756	170	3.99	677
TOTAL	210		873	440		1756	170	3.99	677