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 1 400 $ 3.90 Purchase on January 9 90 4.10 Purchase on January 25 120 4.20 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.)
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 1 400 $ 3.90 Purchase on January 9 90 4.10 Purchase on January 25 120 4.20 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | 400 | $ | 3.90 | |
| Purchase on January 9 | 90 | 4.10 | ||
| Purchase on January 25 | 120 | 4.20 | ||
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.)
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Transcribed Image Text:Weighted Average - Perpetual:
Goods purchased
Cost of Goods Sold
Inventory Balance
Cost
Cost
Cost
# of
units
# of units
Cost of
# of units
Inventory
Balance
Date
per
unit
per
unit
per
unit
sold
Goods Sold
January
1
@
$ 3.90
400
1,560.00
January
90 O @
$ 4.10
400
@
$ 3.90
1,560.00
90
@
$ 4.10
369.00
Average cost
$
1,929.00
490
@
$ 4.10 X
January
25
$ 4.20
$ 4.10
120
@
490
@
2,009.00
120
@
$ 4.20
504.00
Average cost
610
@
$ 4.10 X
2,513.00
January
26
S
1,560.00
700 X @
400 x@
$ 3.90 x =
$ 0.00 X
Totals
1,560.00
||
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