Trey Monson
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases.
Also, on December 15, Monson sells 28 units for $45 each.
Purchases on December 7
Purchases on December 14
Purchases on December 21
18 units @ $18.00 cost
32 units @ $27.00 cost
28 units @ $32.00 cost
Required:
Monson sells 28 units for $45 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 plac
Weighted Average - Perpetual:
Goods purchased
Cost of Goods Sold
Inventory Balance
# of
# of
Cost per
Inventory
Value
Cost per
Cost per
Cost of
# of units
Inventory
Balance
Date
units
units
unit
unit
Goods Sold
unit
sold
December 7
December 14
Average cost
December 15
December 21
Average cost
Totals
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