**Inventory Cost Calculation Using Weighted Average Method**A company uses a periodic inventory system. The inventory activities are as follows:- **April 1**: The company has 9 items of beginning inventory, costing $13 per unit.- **April 18**: The company purchases 15 additional units at a cost of $14 per unit.- **April 29**: The company sells 14 units.**Calculation Objective:** Determine the cost of the 14 units sold using the weighted average method.**Calculation Process:**1. **Determine Total Cost and Units**: - Beginning inventory: 9 units × $13 = $117 - Purchase: 15 units × $14 = $210 - Total units: 9 + 15 = 24 units - Total cost: $117 + $210 = $3272. **Calculate Weighted Average Cost per Unit**: - Weighted average cost = Total cost / Total units - Weighted average cost = $327 / 24 ≈ $13.6253. **Calculate Cost of Units Sold**: - Cost of 14 units sold = 14 × $13.625 = $190.75**Answer**:The cost of the units sold is closest to **$190.75**.

Name: **Inventory Cost Calculation Using Weighted Average Method**A company
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: **Inventory Cost Calculation Using Weighted Average Method**A company uses a periodic inventory system. The inventory activities are as follows:- **April 1**: The company has 9 items of beginning inventory, costing $13 per unit.- **April 18**: The c

The cost of goods sold (COGS) is defined as the total cost (direct nature) associated with getting…

Business

Accounting

A company uses a periodic inventory system. On April 1, the company had 9 items of beginning inventory with a cost of $13 per unit. On April 18, the company purchased 15 units at $14 per unit. Then, on April 29, the company sold 14 units. Using weighted average, the cost of the 14 units sold is closest to Cost of the units sold

A company uses a periodic inventory system. On April 1, the company had 9 items of beginning inventory with a cost of $13 per unit. On April 18, the company purchased 15 units at $14 per unit. Then, on April 29, the company sold 14 units. Using weighted average, the cost of the 14 units sold is closest to Cost of the units sold

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 390 units. Ending inventory at January 31 totals 150 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Date Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. January 1 January 9 Total January 9 January 25 Total January 25 January 26 Total January 26 Goods purchased # of units Units 350 80 110 Cost per # of units unit sold Unit Cost $ 3.40 3.60 3.70 Perpetual LIFO: Cost of Goods Sold Cost per unit Cost of Goods Sold # of units Inventory Balance Cost per unit Inventory Balance $ 0
A company had inventory on July 1 of 5 units at a cost of $16 each. On July 2, they purchased 9 units at $28 each. On July 6 they purchased 5 units at $25 each. On July 8, 8 units were sold for $58 each. Using the LIFO periodic inventory method, what was the value of the inventory on July 8 after the sale?
The Delta company uses a periodic inventory system. The beginning balance of inventory and purchases made by the company during the month of July, 2016 are given below: July 01: Beginning inventory, 500 units @ $20 per unit. July 18: Inventory purchased, 800 units @ $24 per unit. July 25: Inventory purchased, 700 units @ $26 per unit. The Delta company sold 1,400 units during the month of July. Compute cost of goods sold using FIFO method.
Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows: Quantity Unit Cost Total Cost Beginning inventory (Jan. 1) 23 $ 14 $ 322 Purchase (Jan. 11) 15 $ 20 300 Purchase (Jan. 20) 26 $ 22 572 Total 64 $ 1,194 On January 14, Beech Soda, Inc. sold 28 units of this product. The other 36 units remained in inventory at January 31. Assuming that Beech Soda uses the FIFO cost flow assumption, the 36 units of this product in inventory at January 31 have a total cost of: Multiple Choice
A company using the periodic inventory system has inventory costing $137 on hand at the beginning of a period. During the period, merchandise costing $473. At year-end, inventory costing $346 is on hand. The cost of good for the year is?
Tablet Company, which uses a periodic inventory system, reports the following in its inventory records forJune: Units Unit CostBeginning Inventory 10 $12.00Purchase #1 5 $10.00Purchase #2 5 $14.00 During June, Tablet Company sold 12 units. Using the weighted-average cost method, compute the June 30 ending inventory balance for this product.
here are 17 units of the product in the physical inventory at November 30. The periodic inventory system is used. Determine the difference in gross profit between the FO and FIFO inventory cost systems. Enter the answer as a positive number.
The company is using the periodic inventory system, has merchandise inventory costing 140 on hand at the beginning of the period. During the period, merchandise costing 400 is purchased. At year-end, merchandise inventory costing 180 is on hand. Compute the cost of merchandise sold for the year.
Crane Enterprises uses a periodic inventory system for buckets it sells. It had a beginning inventory on April 1 of 72 units at a cost of $ 6 per unit. During April, the following purchases and sales were made. Purchases April 7 62 units at $ 7.00 13 124 units at $ 8.00 23 94 units at $ 9.00 29 52 units at $ 10.00 332 Sales April 5 124 units at $ 20 11 94 units at $ 20 20 84 units at $ 20 30 42 units at $ 20 344 Compute the April 30 ending inventory and April cost of goods sold under (a) average cost, (b) FIFO, and (c) LIFO. (Round cost per unit to 2 decimal places, e.g. 15.25 and final answer to 0 decimal places, e.g. 1,525.)
The Luann Company uses the periodic inventory system. The following July data are for an item in Luann's inventory: July 1 Beginning inventory 30 units @ 10 Purchased $9 per unit 50 units @ $11 per unit 15 Sold 60 units 26 Purchased 25 units @ $13 per unit Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Note: Round your cost per unit to three decimal places, if needed. Then round your final answers to the nearest dollar. A. First-in, First-out: Ending Inventory Cost of Goods Sold: B. Last-in, first-out: Ending Inventory Cost of Goods Sold: C. Weighted-average cost: Ending Inventory Cost of Goods Sold
Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows: Quantity Unit Cost Total Cost Beginning inventory (Jan. 1) 23 $ 14 $ 322 Purchase (Jan. 11) 15 $ 20 300 Purchase (Jan. 20) 26 $ 22 572 Total 64 $ 1,194 On January 14, Beech Soda, Inc. sold 28 units of this product. The other 36 units remained in inventory at January 31. Assuming that Beech Soda uses the FIFO cost flow assumption, the cost of goods sold to be recorded at January 14 is:
The company uses the perpetual inventory method. It began the month of March with 100 units of inventory, at a unit cost of $55. Purchases during March March 5, 60 units at $60 each. March 18, 200 units at $65 each March 29, 40 units at $75 each. Sales during March March 12, 60 units. March 25, 210 units. All units were sold to customer for $100 each. 1. Use the following format to set up this inventory costing problem, Inventory Date Units Cost per Total Cost Date Units Total Cost Unit Beg Balance Units Cost Beginning Balance + Purchases Goods Available for Sale - Sold Ending Balance 2. Use the moving weighted average method to calculate the cost of goods sold for each sale. the lutal cost ol goods sold for the month, and ending inventory. 3. Assuming that the March 12 sale came from beginning inventory, and the March 25 sale was comprised of 25 units from beginning inventory, all 60 units of the March 5 purchase, and the temainder from the March 18 purchase, use specific…