Beginning inventory, purchases, and sales for WCS12 are as follows: Oct. 1 Inventory 350 units at $11 13 Sale 200 units 22 Purchase 350 units at $12 29 Sale 400 units a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places. 11.70 V per unit b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your "average unit cost" to two decimal places. 4,680 V c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places.
Beginning inventory, purchases, and sales for WCS12 are as follows: Oct. 1 Inventory 350 units at $11 13 Sale 200 units 22 Purchase 350 units at $12 29 Sale 400 units a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places. 11.70 V per unit b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your "average unit cost" to two decimal places. 4,680 V c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need help with question C
![# Perpetual Inventory Using Weighted Average
Beginning inventory, purchases, and sales for WCS12 are as follows:
- **October 1**
- Inventory: 350 units at $11
- **October 13**
- Sale: 200 units
- **October 22**
- Purchase: 350 units at $12
- **October 29**
- Sale: 400 units
### Calculations
**a.** Assuming a perpetual inventory system and using the **weighted average method**, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places.
- **Answer:** $11.70 per unit ✔
**b.** Assuming a perpetual inventory system and using the **weighted average method**, determine the cost of goods sold on October 29. Round your "average unit cost" to two decimal places.
- **Answer:** $4,680 ✔
**c.** Assuming a perpetual inventory system and using the **weighted average method**, determine the inventory on October 31. Round your "average unit cost" to two decimal places.
- **Answer:** [Blank] ✘
**Explanation:**
- The weighted average method is used to smooth out price changes by averaging inventory costs. This is useful for calculating inventory value continuously over time.
- In this system, the average cost is recalculated after each purchase. It considers the number of units and the cost at which those units were acquired to ensure accurate financial statements.
By determining these values, businesses can manage their inventory more effectively and maintain accurate costs, leading to better decision-making and financial reporting.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e43065a-701a-4089-b566-7b64895c40d3%2Fdf6f8e5c-36e3-4b34-90d3-e3b97ebc9332%2F7z929t_processed.png&w=3840&q=75)
Transcribed Image Text:# Perpetual Inventory Using Weighted Average
Beginning inventory, purchases, and sales for WCS12 are as follows:
- **October 1**
- Inventory: 350 units at $11
- **October 13**
- Sale: 200 units
- **October 22**
- Purchase: 350 units at $12
- **October 29**
- Sale: 400 units
### Calculations
**a.** Assuming a perpetual inventory system and using the **weighted average method**, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places.
- **Answer:** $11.70 per unit ✔
**b.** Assuming a perpetual inventory system and using the **weighted average method**, determine the cost of goods sold on October 29. Round your "average unit cost" to two decimal places.
- **Answer:** $4,680 ✔
**c.** Assuming a perpetual inventory system and using the **weighted average method**, determine the inventory on October 31. Round your "average unit cost" to two decimal places.
- **Answer:** [Blank] ✘
**Explanation:**
- The weighted average method is used to smooth out price changes by averaging inventory costs. This is useful for calculating inventory value continuously over time.
- In this system, the average cost is recalculated after each purchase. It considers the number of units and the cost at which those units were acquired to ensure accurate financial statements.
By determining these values, businesses can manage their inventory more effectively and maintain accurate costs, leading to better decision-making and financial reporting.
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