Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round unit costs to 2 decimal places.)

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases.
Monson uses a perpetual inventory system. Also, on December 15, Monson sells 15 units for $37 each.
Purchases on December 7
Purchases on December 14
Purchases on December 21
QS 5-13 (Algo) Perpetual: Inventory costing with weighted average LO P1
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.)
December 7
Date
December 14
Average cost December 14
December 15
December 21
Average cost December 21
Totals
# of
units
10 units @ $23.00 cost
20 units @ $29.00 cost
15 units @ $31.00 cost
Goods purchased
Cost per unit
10 at $ 23.00
20 at $
15 at $
Inventory Value
$
29.00 $
Weighted Average - Perpetual:
31.00 = $
230.00
580.00
465.00
# of
units
sold
15 at
Cost of Goods Sold
Cost per Cost of Goods
unit
Sold
$ 37.00 =
$
$
555.00
555.00
# of units
0
at
at
at
at
at
Inventory Balance
Cost per unit
$
$
29.00 =
31.00 =
Inventory
Balance
$
0.00
Transcribed Image Text:Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Monson uses a perpetual inventory system. Also, on December 15, Monson sells 15 units for $37 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 QS 5-13 (Algo) Perpetual: Inventory costing with weighted average LO P1 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.) December 7 Date December 14 Average cost December 14 December 15 December 21 Average cost December 21 Totals # of units 10 units @ $23.00 cost 20 units @ $29.00 cost 15 units @ $31.00 cost Goods purchased Cost per unit 10 at $ 23.00 20 at $ 15 at $ Inventory Value $ 29.00 $ Weighted Average - Perpetual: 31.00 = $ 230.00 580.00 465.00 # of units sold 15 at Cost of Goods Sold Cost per Cost of Goods unit Sold $ 37.00 = $ $ 555.00 555.00 # of units 0 at at at at at Inventory Balance Cost per unit $ $ 29.00 = 31.00 = Inventory Balance $ 0.00
Expert Solution
Step 1

Introduction:-

Weighted average method is one of the inventory valuation method. which is used to identify ending inventory and cost of goods sold.

Formula

=Costs available for sale / units available for sale

steps

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