Required:Determine the Cost of Sales and the ending inventory balance under a perpetual inventory system using the weighted average cost method. Keep two decimals in all calculations. Calculations and workings are optional. Between FIFO and the weighted average cost method, explain which costing method produces a higher ending inventory for July 2022. Calculation for FIFO method is not required. Hot Bread Bakery sells freshly baked products as well as baking-relatedaccessories such as utensils and cookbooks. It had the followingpurchases and sales during July 2022.DateJuly 1611142127Purchase Units51010Unit Cost$354045Sale Units486

The FIFO states that most earlier purchases are sold first. It means the first purchases are sold…

Answered: Required: Determine the Cost of Sales…

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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Determine the Cost of Sales and the ending inventory balance under a perpetual inventory system using the weighted average cost method. Keep two decimals in all calculations. Calculations and workings are optional.
Between FIFO and the weighted average cost method, explain which costing method produces a higher ending inventory for July 2022. Calculation for FIFO method is not required.

Hot Bread Bakery sells freshly baked products as well as baking-related
accessories such as utensils and cookbooks. It had the following
purchases and sales during July 2022.
Date
July 1
6
11
14
21
27
Purchase Units
5
10
10
Unit Cost
$35
40
45
Sale Units
4
8
6

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