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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.)

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.)

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 7PA: Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to...
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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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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 ||
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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