Case scenario: You are a newly hired accountant for Sushi Beeber, Inc., a retail company specializing in apparel for small pets. The company would like to expand its apparel line to include sweaters for cats. Sushi Beeber has found several manufacturers that offer competitive prices to ensure cost of goods sold is low. Because the company receives merchandise from different manufacturers and the cat sweaters will be commoditized, the company needs to develop an internal accounting system to keep track of inventory cost. You think that the weighted average cost method may help the company stay up-to-date with the inventory cost as purchase cost changes over time. Your task is to create a spreadsheet that can calculate the inventory cost based on purchases and sales for the month. SEE ATTACHED for Numbers Find the inventory total cost and weighted average cost for the month, i.e., all of the records of data. Enter values for the next eight rows, Row 3 through 10, in the table below. Do not round intermediate calculations. Round your answers to the nearest cent. Inventory Weighted Date Purchase/Sale Total Cost Average Cost 1-Oct Purchase 1-Oct Sale 3-Oct Sale 4-Oct Purchase 4-Oct Sale 4-Oct Sale 7-Oct Sale 7-Oct Purchase

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Case scenario: You are a newly hired accountant for Sushi Beeber, Inc., a retail company specializing in apparel for small pets. The company would like to expand its apparel line to include sweaters for cats. Sushi Beeber has found several manufacturers that offer competitive prices to ensure cost of goods sold is low. Because the company receives merchandise from different manufacturers and the cat sweaters will be commoditized, the company needs to develop an internal accounting system to keep track of inventory cost. You think that the weighted average cost method may help the company stay up-to-date with the inventory cost as purchase cost changes over time. Your task is to create a spreadsheet that can calculate the inventory cost based on purchases and sales for the month.

SEE ATTACHED for Numbers

Find the inventory total cost and weighted average cost for the month, i.e., all of the records of data. Enter values for the next eight rows, Row 3 through 10, in the table below. Do not round intermediate calculations. Round your answers to the nearest cent.

		Inventory	Weighted
Date	Purchase/Sale	Total Cost	Average Cost
1-Oct	Purchase
1-Oct	Sale
3-Oct	Sale
4-Oct	Purchase
4-Oct	Sale
4-Oct	Sale
7-Oct	Sale
7-Oct	Purchase

Purchase
Sgn for Cost of
Purchase Unit Sign (purchase (purchase 1,
Sien for Cost of
'T=ajes) saes
Units on
Hand
Inventory Total
Weighted
Date
Purchase/Sale
Units
Purchase
Cost of Sales
Average Cost
(Tes t
lo jes
(o-aseupund
00'00t
DO-
1-Oct
S00'000'I
Purchase
Sale
s 08
0011
POE
Purchase
Sale
Sale
115.00
4-Oct
7-Oct
09
ajes
Purchase
108
$06
00'stt
Purchase
10-8
aes
8-Oct
130-6
9-Oct
ajes
Purchase
$ jos
00LIT
Sale
P0-6
or
P0-6
10-Oct
Purchase
00
10-Oct
Purchase
11-Oct
11-Oct
14-Oct
Sale
Purchase
124.00
14:Oct
0-ST
lot
00
00
Purchase
17-Oct
Purchase
Sale
s los
18-Oct
ajes
Purchase
Sale
Purchase
000
00'
30-
Purchase
Sale
Sale
loz
ajes
Purchase
Sale
Purchase
$los
09
00'S2
O OE
30-Oct
ajes
Purchase
00'92

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