The company uses the perpetual inventory method and started the month of November with 500 units of inventory at a cost of $3 each. Purchases November 5, 500 units at $5 each November 18, 500 units at $6 each November 29, 500 units at $9 each Sales November 12, 400 units sold at $14 each November 25, 900 units sold at $14 each 1. Use the following format to set up this inventory costing problem, as shown in Video #2. Inventory Date Cost per Unit Units Total Cost Date Units Total Cost Beg Balance Units Cost Beginning Balance + Purchases Goods Available for Sale - Sold Ending Balance 2. Use the moving weighted average method to calculate cost of goods sold and ending inventory. 3. Calculate the company's gross margin based on using the average cost method.
The company uses the perpetual inventory method and started the month of November with 500 units of inventory at a cost of $3 each. Purchases November 5, 500 units at $5 each November 18, 500 units at $6 each November 29, 500 units at $9 each Sales November 12, 400 units sold at $14 each November 25, 900 units sold at $14 each 1. Use the following format to set up this inventory costing problem, as shown in Video #2. Inventory Date Cost per Unit Units Total Cost Date Units Total Cost Beg Balance Units Cost Beginning Balance + Purchases Goods Available for Sale - Sold Ending Balance 2. Use the moving weighted average method to calculate cost of goods sold and ending inventory. 3. Calculate the company's gross margin based on using the average cost method.
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Inventories
Section: Chapter Questions
Problem 6.2BPR: LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a...
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Topic Video
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![Problem 9-2 Part B
The company uses the perpetual inventory method and started the month of November with 500 units
of inventory at a cost of $3 each.
Purchases
November 5, 500 units at $5 each
November 18, 500 units at $6 each
November 29, 500 units at $9 each
Sales
November 12, 400 units sold at $14 each
November 25, 900 units sold at $14 each
1. Use the following format to set up this inventory costing problem, as shown in Video #2.
Inventory
Date
Únits
Cost per
Total Cost
Date
Units
Total Cost
Unit
Beg Balance
Units
Cost
Beginning Balance
+ Purchases
Goods Available for Sale
- Sold
Ending Balance
2. Use the moving weighted average method to calculate cost of goods sold and ending inventory.
3. Calculate the company's gross margin based on using the average cost method.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F079d8fae-2118-4744-9f65-ccaea319037f%2Fb5cbdbb4-020f-4a1e-b016-95eeb7f2a0a1%2Fhs6au69_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 9-2 Part B
The company uses the perpetual inventory method and started the month of November with 500 units
of inventory at a cost of $3 each.
Purchases
November 5, 500 units at $5 each
November 18, 500 units at $6 each
November 29, 500 units at $9 each
Sales
November 12, 400 units sold at $14 each
November 25, 900 units sold at $14 each
1. Use the following format to set up this inventory costing problem, as shown in Video #2.
Inventory
Date
Únits
Cost per
Total Cost
Date
Units
Total Cost
Unit
Beg Balance
Units
Cost
Beginning Balance
+ Purchases
Goods Available for Sale
- Sold
Ending Balance
2. Use the moving weighted average method to calculate cost of goods sold and ending inventory.
3. Calculate the company's gross margin based on using the average cost method.
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