## Inventory Management Using Weighted Average Method### Required InformationTrey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Additionally, on December 15, Monson sells 30 units for $35 each.- Purchases on December 7: 20 units @ $14.00 cost- Purchases on December 14: 36 units @ $21.00 cost- Purchases on December 21: 30 units @ $25.00 cost### Required TaskMonson sells 30 units for $35 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. **(Round your per unit costs to 2 decimal places.)**### Weighted Average - Perpetual Inventory TableThis table is used to calculate and track the inventory values, cost of goods sold, and inventory balances over different transaction dates.#### Table Explanation:1. **Columns:** - **Goods Purchased:** - `# of units`: Number of units purchased. - `Cost per unit`: Cost of each unit purchased. - `Inventory Value`: Total inventory value at each purchase point. - **Cost of Goods Sold:** - `# of units sold`: Number of units sold. - `Cost per unit`: Cost of units sold (to be calculated). - `Cost of Goods Sold`: Total cost for the units sold. - **Inventory Balance:** - `# of units`: Total units remaining after sale. - `Cost per unit`: Cost of remaining units (after weighted average calculation). - `Inventory Balance`: Total inventory value of remaining units.2. **Rows:** - **December 7:** Initial purchase of inventory. - **December 14:** Additional purchase. - **Average cost:** Calculate average cost per unit after December 14 purchase. - **December 15:** Sales transaction. - **December 21:** Final purchase. - **Average cost:** Final weighted average calculation. - **Totals:** Summative data at the end of the transactions.3. **Key Calculation:** - **Weighted Average Cost Per Unit:** This is calculated after each purchase. It considers the total cost of available inventory divided by the number of units available. This cost is used for determining the cost of goods sold during

A weighted average is a calculation that takes into account the various levels of significance of…

Answered: Required Information Trey Monson starts…

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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Required information [The following information applies to the questions displayed below.] Sara's Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sara's Boutique uses a periodic inventory system. Date Transactions October 1 Beginning inventory October 4 Sale October 10 Purchase October 13 Sale October 20 Purchase October 28 October 30 Sale Purchase Units 6 Unit Cost Total Cost $810 $4,860 4 5 820 4,100 3 4 830 3,320 7 7 840 5,880 $18,160 Required: 1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase. Answer is complete but not entirely correct. Ending inventory $ 6,720 Cost of…
Ashley's Art Supplies began business on March 1 and made the following four inventory purchases in March: March 1 March 9 March 15 March 26 Totals: X Units Purchased 150 units 200 units 200 units 150 units 700 units 2,895 Unit Cost $5.20 $5.85 $6.30 $6.80 Total Cost $ 780 A physical count of inventory on March 31 reveals that there are 200 units on hand. Use the FIFO inventory method to calculate the Cost of Goods Sold for March. (Include two decimals in your answer even if your answer is a whole number. For example, if your answer is 1,500, enter 1,500.00. Do NOT include a $ sign.) (See your Unit 4 notes, page 3) 1,170 1,260 1,020 $4,230
Beginning inventory, purchases and sales data for T-shirts are as follows: April 3 Inventory 24 units @ $10 11 Purchase 26 units @ $12 14 Sale 36 units 21 Purchase 18 units @ $15 25 Sale 20 units Assuming the business maintains a periodic inventory system; calculate the cost of merchandise sold and ending inventory under the following assumptions: FIFO LIFO Average cost In your computations, round the average cost per unit to two decimal places and round your final answers to the nearest dollar.
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Requlred Information Trey Monson starts a merchandising business on December 1 and enters Into the following three Inventory purchases. Also, on December 15, Monson sells 30 units for $35 each. Purchases on December 7 20 units @ $14.ee cost 36 units e $21.00 cost 30 units e $25.00 cost Purchases on December 14 Purchases on December 21 Requlred: Monson sells 30 units for $35 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigne the December 31 ending Inventory when costs are assigned based on LIFO. Perpetual LIFO: Goods purchased Cost of Goods Sold Inventory Balance Cost of Goods Available for Sale # of units sold Cost per # of units Cost per Cost of Goods unit # of units Cost per unit Inventory Balance Date unit Sold December 7 0.00 December 14 0.00 0.00 December 15 December 21 0.00 Totals
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Vaughn Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Vaughn's purchases of Xpert snowboards during September is shown below. During the same month. 98 Xpert snowboards were sold. Vaughn's uses a periodic inventory system. Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 23 HK$970 HK$ 22,310 Sept. 12. Purchases 37 1,020 37,740 Sept. 19 Purchases 13 1.040 13,520 Sept. 26 Purchases 47 1,050 49.350 Totals 120 HK$122.920 (a) Compute the ending inventory at September 30 and cost of goods sold using the FIFO and average-cost methods. (Round per unit cost to 3 decimal places, eg. 15.125 and final answers to O decimal places, eg. 125) FIFO Average-Cost The ending inventory at September 30 HK$ HK$ Cost of goods sold HK$ HK$ (b) For both FIFO and average-cost, calculate the sum of ending inventory and cost of goods sold. (Round per unit cost to 3 decimal places, eg. 15.125 and final answers to O decimal places, eg 125) FIFO…
Denise’s Boutique uses the perpetual inventory method for its wristlet purses. It has provided the following inventory information for October: Oct. 1 On hand, 40 units @ $20 each $ 800Oct. 8 Purchased 200 units @ $21 each 4,200Oct. 14 Sold 190 units @ $50 each 9,500Oct. 19 Purchased 100 units @ $27 each 2,700Oct. 28 Sold 120 units @ $50 each 6,000 Denise’s Boutique has a 30% effective income tax rate. A. How much is the cost of ending inventory at October 31 and the cost of goods sold for Octoberusing FIFO?B. How much is the cost of ending inventory at October 31 and the cost of goods sold for Octoberusing LIFO?C. How much will Denise’s Boutique save in income taxes if it uses LIFO?D. Calculate Denise’s Boutique’s inventory-on-hand period under both LIFO and FIFO.
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Required information Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 25 units for $25 each. Purchases on December 7. 15 units @ $10.00 cost 30 units @ $15.00 cost 25 units @ $18.00 cost Purchases on December 14 Purchases on December 21 Required: Monson sells 25 units for $25 each on December 15. Of the units sold, 12 are from the December 7 purchase and 13 are from the December 14 purchase. Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on specific identification.
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Teal Mountain Company sells discounted shoes to the fashion-oriented consumer. The following schedule relates to the company's inventory for the month of March: March 1 (a) 7 8 i. 15 ii. 20 25 Beginning inventory Purchase Purchase Sale Sale Purchase 27 Sale FIFO Weighted-average eTextbook and Media 2,940 units Save for Later 980 units Teal Mountain Company uses the perpetual inventory system. $ 1,470 units $ 3,430 units 686 units 490 units 1,176 units Cost $86,730 39,200 Calculate Teal Mountain Company's cost of goods sold, gross margin, and ending inventory using: 73,500 i. FIFO ii. Weighted-average (Round calculations for cost per unit to 2 decimal places, e.g. 10.52 and final answers to O decimal places, e.g. 61,052.) 14,602 Cost of Goods Sold Sales $ $308,700 $ 51,450 70,560 Gross Margin $ $ Ending Inventory Attempts: 0 of 2 used Submit Answer

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