**Inventory Management: Weighted Average Cost Method****Scenario Overview:**Intercontinental, Incorporated, utilizes a perpetual inventory system for effective stock management. The following information outlines the company's inventory activities for the month of August:- **August 1:** Purchased 10 units at a total cost of $910, equating to $91 per unit.- **August 3:** Acquired 15 units costing $1,590, translating to $106 per unit.- **August 14:** Sold 20 units.- **August 17:** Procured 20 units for $2,300, amounting to $115 per unit.- **August 28:** Bought 10 units for $1,190, which is $119 per unit.- **August 30:** Sold 23 units.**Objective:**To determine the cost of goods sold (COGS) for the 23 units sold on August 30 and the remaining inventory balance on the same date, utilizing the weighted average cost method.**Solution Space:**- **COGS (Cost of Goods Sold) Calculation:** - Weighted average cost per unit is calculated by dividing the total cost of goods available for sale by the total units available. - **Inventory Balance Calculation:** - Subtract the COGS from the total cost of goods available to determine the ending inventory balance.**Answer Boxes:**1. Cost of goods sold: [Blank space for calculation result]2. Inventory balance: [Blank space for calculation result]This educational exercise helps illustrate how businesses can apply inventory costing methods to manage their financials effectively. By understanding this process, learners can apply similar techniques to real-world inventory management scenarios.

Companies may just produce goods without selling them during a particular season of the year. Hence,…

Intercontinental, Incorporated, uses a perpetual in inventory: August 1, purchased 10 units for $910 or per unit; August 14, sold 20 units; August 17, purch 10 units for $1,190 or $119 per unit; August 30, sold Using weighted average, the cost of goods sold fo balance at August 30 is

Intercontinental, Incorporated, uses a perpetual in inventory: August 1, purchased 10 units for $910 or per unit; August 14, sold 20 units; August 17, purch 10 units for $1,190 or $119 per unit; August 30, sold Using weighted average, the cost of goods sold fo balance at August 30 is

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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Kingbird, Inc. uses a periodic inventory system and reports the following for the month of June. Date June 1 12 23 30 (a) Explanation Units Inventory Purchase Purchase Inventory 130 330 Cost of goods sold 200 203 Cost of the ending inventory Unit Cost $ $5 6 7 Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round per unit cost to 3 decimal places, e.g. 15.647 and final answers to 0 decimal places, e.g. 5,125.) Total Cost FIFO $650 1,980 1,400 LA LIFO LA LA Average-cost
The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 55 $ 10 July 13 Purchase 275 11 July 25 Sold (100 ) $ 14 July 31 Ending Inventory 230 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under FIFO. Assume a periodic inventory system is used. How would i creat a FIFO periodic table?
pp. Subject :- Accounting
Bonita Company's record of transactions concerning part X for the month of April was as follows. Purchases April 1 (balance on hand) 4 (a1) 11 18 26 30 280 @ 580 Average-cost per unit $ fel 480 @ 380 $5.90 6.00 380 @ 6.30 fel 6.30 780 @ 6.60 6.80 Sales April 5 12 27 28 480 380 1,160 150 Calculate average-cost per unit. Assume that perpetual inventory records are kept in units only. (Round answer to 4 decimal places, e.g. 2.7682.)
Intercontinental, Incorporated, uses a perpetual inventory system. Consider the following information about its inventory: August 1, purchased 10 units for $910 or $91 per unit; August 3, purchased 15 units for $1,590 or $106 per unit; August 14, sold 20 units; August 17, purchased 20 units for $2,300 or $115 per unit; August 28, purchased 10 units for $1,190 or $119 per unit; August 30, sold 23 units. Using FIFO, the cost of goods sold for the sale of 23 units on August 30 is ____ and the inventory balance at August 30 is _____.
How do you calculate the total amount to be assigned to the ending inventory and cost of goods sold December 31 under each of the following methods?
The inventory records for Radford Company reflected the following Beginning inventory on May 1 First purchase on May 7 Second purchase on May 17 Third purchase on May 23 1,200 units @ $4.00 1,300 units @ $4.20 1,500 units @ $4.30 1,100 units@ $4.40 Sale on May 31 3,900 units @ $5.90 What is the amount of gross margin assuming the weighted average cost flow method is used? (Round your intermediate calculations to 2 dec Multiple Choice $10.920 $17160 $6,513 O $5.850
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