Entries and Perpetual Inventory Account (Weighted Average) EXHIBIT 5 Item 127B Jan. 4 Accounts Receivable 21,000 Sales 21,000 Cost of 4 Cost of Merchandise Sold 14,000 Purchases Merchandise Sold Inventory Merchandise Inventory 14,000 Unit Total Unit Total Unit Total 10 Merchandise Inventory Date Quantity 11,200 Quantity Cost Cost Quantity Cost Cost Cost Cost Accounts Payable 11,200 Jan. 1 20,000 1,000 20.00 20.00 14,000 700 300 20.00 6,000 22 Accounts Receivable 10,800 22.40 11,200 10 500 800 21.50 17,200 Sales 10,800 7,740 9,460 22 360 21.50 440 21.50 22 Cost of Merchandise Sold 7,740 240 28 21.50 5,160 200 21.50 4,300 Merchandise Inventory 7,740 23.30 13,980 30 600 800 22.85 18,280 Balances 31 26,900 800 22.85 18,280 28 Accounts Receivable 7,200 Sales 7,200 28 Cost of Merchandise Sold 5,160 Cost of January 31 inventory Merchandise Inventory 5,160 merchandise sold 30 Merchandise Inventory Accounts Payable 13,980 13,980 ->
Entries and Perpetual Inventory Account (Weighted Average) EXHIBIT 5 Item 127B Jan. 4 Accounts Receivable 21,000 Sales 21,000 Cost of 4 Cost of Merchandise Sold 14,000 Purchases Merchandise Sold Inventory Merchandise Inventory 14,000 Unit Total Unit Total Unit Total 10 Merchandise Inventory Date Quantity 11,200 Quantity Cost Cost Quantity Cost Cost Cost Cost Accounts Payable 11,200 Jan. 1 20,000 1,000 20.00 20.00 14,000 700 300 20.00 6,000 22 Accounts Receivable 10,800 22.40 11,200 10 500 800 21.50 17,200 Sales 10,800 7,740 9,460 22 360 21.50 440 21.50 22 Cost of Merchandise Sold 7,740 240 28 21.50 5,160 200 21.50 4,300 Merchandise Inventory 7,740 23.30 13,980 30 600 800 22.85 18,280 Balances 31 26,900 800 22.85 18,280 28 Accounts Receivable 7,200 Sales 7,200 28 Cost of Merchandise Sold 5,160 Cost of January 31 inventory Merchandise Inventory 5,160 merchandise sold 30 Merchandise Inventory Accounts Payable 13,980 13,980 ->
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following units of a particular item were available for sale during the calendar year:
Jan. 1 Inventory 4,000 units at $20
Apr. 19 Sale 2,500 units
June 30 Purchase 6,000 units at $24
Sept. 2 Sale 4,500 units
Nov. 15 Purchase 1,000 units at $25
The firm uses the weighted average cost method with a perpetual inventory system.
Determine the cost of merchandise sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5.
Transcribed Image Text:Entries and Perpetual Inventory Account (Weighted Average)
EXHIBIT 5
Item 127B
Jan. 4 Accounts Receivable
21,000
Sales
21,000
Cost of
4 Cost of Merchandise Sold
14,000
Purchases
Merchandise Sold
Inventory
Merchandise Inventory
14,000
Unit Total
Unit
Total
Unit
Total
10 Merchandise Inventory
Date
Quantity
11,200
Quantity
Cost
Cost
Quantity
Cost
Cost
Cost
Cost
Accounts Payable
11,200
Jan. 1
20,000
1,000
20.00
20.00 14,000
700
300
20.00
6,000
22 Accounts Receivable
10,800
22.40 11,200
10
500
800
21.50
17,200
Sales
10,800
7,740
9,460
22
360
21.50
440
21.50
22 Cost of Merchandise Sold
7,740
240
28
21.50
5,160
200
21.50
4,300
Merchandise Inventory
7,740
23.30 13,980
30
600
800
22.85
18,280
Balances
31
26,900
800
22.85
18,280
28 Accounts Receivable
7,200
Sales
7,200
28 Cost of Merchandise Sold
5,160
Cost of
January 31
inventory
Merchandise Inventory
5,160
merchandise
sold
30 Merchandise Inventory
Accounts Payable
13,980
13,980
->
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