Weighted Average Cost Flow Method Under Perpetual Inventory SystemThe following units of a particular item were available for sale during the calendar year:Jan. 1Inventory15,000 units at $60.00Mar. 18Sale12,000 unitsMay 2Purchase27,000 units at $62.00Aug. 9Sale22,500 unitsOct. 20Purchase10,500 units at $64.20The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of merchandise sold for each sale and the Iinventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Round unit cost to twodecimal places, if necessary.Perpetual Inventory AccountWeighted Average Cost Flow MethodPurchasesCost of Merchandise SoldInventoryDateQuantityUnit CostTotal CostQuantityUnit CostTotal CostQuantityUnit CostTotal CostJan. 115,00060Mar. 1812,000]sMay 227,000621,674,000Aug. 922,500Oct. 2010,50064.20674,100Dec. 31Balances

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Description: Weighted Average Cost Flow Method Under Perpetual Inventory SystemThe following units of a particular item were available for sale during the calendar year:Jan. 1Inventory15,000 units at $60.00Mar. 18Sale12,000 unitsMay 2Purchase27,000 units at $62.

Solution: Computation of cost of merchandise sold and inventory balances after each transaction:

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Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 15,000 units at $60.00 Mar. 18 Sale 12,000 units May 2 Purchase 27,000 units at $62.00 Aug. 9 Sale 22,500 units Oct. 20 Purchase 10,500 units at $64.20 The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Round decimal places, if necessary. Perpetual Inventory Account Weighted Average Cost Flow Method Purchases Cost of Merchandise Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jan. 1 15,000 60 Mar. 18 12,000 May 2 27,000 62 1,674,000 Aug. 9 22,500 Oct. 20 10,500 64.20 674,100 Dec. 31 Balances

Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 15,000 units at $60.00 Mar. 18 Sale 12,000 units May 2 Purchase 27,000 units at $62.00 Aug. 9 Sale 22,500 units Oct. 20 Purchase 10,500 units at $64.20 The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Round decimal places, if necessary. Perpetual Inventory Account Weighted Average Cost Flow Method Purchases Cost of Merchandise Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jan. 1 15,000 60 Mar. 18 12,000 May 2 27,000 62 1,674,000 Aug. 9 22,500 Oct. 20 10,500 64.20 674,100 Dec. 31 Balances

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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