Required: 2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.DateJanuary 01January 10January 20January 25January 30DateJanuary 01January 10January 20January 25January 30ActivitiesBeginning inventorySalesPurchaseSalesPurchaseTotalsWeighted AverageActivitiesBeginning inventorySalesPurchaseSalesPurchaseTotalsUnitsUnits Acquired at CostCost195290605Units120 $11.00155per unit135$12.00290Cost of Goods SoldCostper unit$10.50Total cost$2,340.00$1,320.00$3,045.00$6,705.00Cost of goodssold$0.00Units155135290Units195Units Sold at RetailSelling priceper unit$21.00$21.00Inventory BalanceCost per unit$12.00Total Sales$3,255.00$2,835.00$6,090.00Total Cost$2,340.00

Inventory Valuation is a method of calculating the value of stock at the end of an accounting…

Answered: Determine the cost assigned to ending…

Business

Accounting

Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.

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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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

Required: 2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.
Date
January 01
January 10
January 20
January 25
January 30
Date
January 01
January 10
January 20
January 25
January 30
Activities
Beginning inventory
Sales
Purchase
Sales
Purchase
Totals
Weighted Average
Activities
Beginning inventory
Sales
Purchase
Sales
Purchase
Totals
Units
Units Acquired at Cost
Cost
195
290
605
Units
120 $11.00
155
per unit
135
$12.00
290
Cost of Goods Sold
Cost
per unit
$10.50
Total cost
$2,340.00
$1,320.00
$3,045.00
$6,705.00
Cost of goods
sold
$0.00
Units
155
135
290
Units
195
Units Sold at Retail
Selling price
per unit
$21.00
$21.00
Inventory Balance
Cost per unit
$12.00
Total Sales
$3,255.00
$2,835.00
$6,090.00
Total Cost
$2,340.00

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FIFO, Average cost, and LIFO are often used for inventory valuation purposes. Compare these methods and discuss the effects of each method in the determination of income and asset management
Identify each item as describing the FIFO method, LIFO method, or average cost method of inventory valuation. A. Involves calculating the total number of units in the warehouse FIFO LIFO Average cost B. To determine cost of goods sold, begin with the earliest goods acquired FIFO LIFO Average cost C. To determine merchandise inventory balance, begin with the earliest goods acquired FIFO LIFO Average cost
The cost of goods sold (Using the FIFO method) $.__________________________ The of cost of the ending Inventory (using the LIFO method) $____________________ The cost of Goods sold (Using the LIFO method) $_______________________________
Which of the following items are included when calculating the carrying cost of inventory? (Select all that apply.) ✔ warehousing costs manufacturing costs procurement costs O financing costs
The cost of goods sold is based on the oldest purchases under which method of calculating inventory cost? O A. weighted average method O B. first in, first out (FIFO) O C. gross profit method O D. last in, first out (LIFO)
Differentiate between the specific identification, FIFO, LIFO, and average cost methods used to determine the cost of ending inventory and cost of goods sold.
Identify four inventory costing methods for assigning cost to ending inventory and cost of goods sold and briefly explain the difference in the methods.