Easton Company uses the periodic inventory system and had the followinginventory & sales activity for the month of May 2019:DateActivityQuantity Unit Price5/1 Beginning Inventory140$115/5Purchase120$135/15 Purchase270$155/25Purchase420$17Sales were 430 units at $25. Using the Weighted Average method, determine thedollar value of Ending Inventory for the month of May.

Answered: Easton Co inventory Date 5/1 5/5 5/15…

Business

Accounting

Easton Co inventory Date 5/1 5/5 5/15 5/25 Sales wer dollar valı

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

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Easton Company uses the periodic inventory system and had the following
inventory & sales activity for the month of May 2019:
Date
Activity
Quantity Unit Price
5/1 Beginning Inventory
140
$11
5/5
Purchase
120
$13
5/15 Purchase
270
$15
5/25
Purchase
420
$17
Sales were 430 units at $25. Using the Weighted Average method, determine the
dollar value of Ending Inventory for the month of May.

Expert Solution

Step 1

Under the Weighted Average method,

Total cost of goods is divided by the total number of units to calculate the weighted average cost.

Then, the weighted average cost can be multiplied by the number of units sold and unsold.

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