Using weighted-average cost, calculate ending inventory and cost of goods sold at August 31. (Round your intermediate and final answers to 2 decimal places.) Ending inventory Cost of goods sold
Using weighted-average cost, calculate ending inventory and cost of goods sold at August 31. (Round your intermediate and final answers to 2 decimal places.) Ending inventory Cost of goods sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Pete’s Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Pete’s Tennis Shop uses a periodic inventory system.
| Date | Transactions | Units | Unit Cost | Total Cost | |
| August | 1 | Beginning inventory | 8 | $150 | $1,200 |
| August | 4 | Sale ($175 each) | 5 | ||
| August | 11 | Purchase | 10 | 140 | 1,400 |
| August | 13 | Sale ($190 each) | 8 | ||
| August | 20 | Purchase | 10 | 130 | 1,300 |
| August | 26 | Sale ($200 each) | 11 | ||
| August | 29 | Purchase | 12 | 120 | 1,440 |
| 5,340 |
For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory and 10 rackets from the August 20 purchase.
4. Using weighted-average cost, calculate ending inventory and cost of goods sold at August 31. (Round your intermediate and final answers to 2 decimal places.)
| Ending inventory | |
| Cost of goods sold |
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