Required information In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 300 units at $5 on January 1, (2) 450 units at $6 on January 8, and (3) 840 units at $7 on January 29. Assume 990 units are on hand at the end of the month. Calculate the cost of goods available for sale, cost of goods sold, and ending inventory under the weighted average cost flow assumptions. Assume perpetual inventory system and sold 600 units between January 9 and January 28. (Round your intermediate calculations to 2 decimal places.)
Required information In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 300 units at $5 on January 1, (2) 450 units at $6 on January 8, and (3) 840 units at $7 on January 29. Assume 990 units are on hand at the end of the month. Calculate the cost of goods available for sale, cost of goods sold, and ending inventory under the weighted average cost flow assumptions. Assume perpetual inventory system and sold 600 units between January 9 and January 28. (Round your intermediate calculations to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following
order: (1) 300 units at $5 on January 1, (2) 450 units at $6 on January 8, and (3) 840 units at $7 on January 29. Assume
990 units are on hand at the end of the month.
Calculate the cost of goods available for sale, cost of goods sold, and ending inventory under the weighted average cost flow
assumptions. Assume perpetual inventory system and sold 600 units between January 9 and January 28. (Round your intermediate
calculations to 2 decimal places.)
Goods Available for Sale
Cost of Goods Sold
Ending Inventory
Weighted Average
Cost
1,570
$
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