### Weighted Average Cost Flow Method Under Perpetual Inventory SystemConsider a particular item with the following inventory and sales data during the calendar year:- **Beginning Inventory:** 4,000 units at $40 each- **Sale 1:** 2,500 units- **Purchase 1:** 4,500 units at $44 each- **Sale 2:** 5,000 units- **Purchase 2:** 2,000 units at $46 each### ObjectiveWe aim to determine the cost of goods sold (COGS) for each sale and the inventory balance after each sale using the weighted average cost method within a perpetual inventory system. The results should be filled out as illustrated in the provided schedule.### Schedule of Cost of Goods Sold**Weighted Average Cost Flow Method**| | **Purchases** | **Cost of Goods Sold** | **Inventory** | |---------------------------|---------------------------------------|----------------------------------------|---------------------------------------| | **Quantity** | **Unit Cost** | **Total Cost** | **Quantity** | **Unit Cost** | **Total Cost** | **Quantity** | **Unit Cost** | **Total Cost** | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balances | | | | | | | | | The table provided is an empty computational schedule for determining the cost of goods sold and inventory balances using the weighted average cost flow method.**Instructions:**1. **Purchases Columns:** - **Quantity:** Enter the units purchased. - **Unit Cost:** Enter the cost per unit of items purchased. - **Total Cost:** Compute and enter the total cost for the purchased units (Quantity * Unit Cost).2. **Cost of Goods Sold Columns:** - **Quantity:** Enter the units sold. - **Unit Cost:** Calculate the weighted average unit cost. - **Total Cost:** Compute the total cost for the sold units (Quantity * Unit Cost).3. **Inventory Columns:** - **Quantity:** ### Weighted Average Cost Flow Method Under Perpetual Inventory System**Overview:**The following units of a particular item were available for sale during the calendar year:- **Jan. 1:** Inventory of 4,000 units at $40 each- **Apr. 19:** Sale of 2,500 units- **June 30:** Purchase of 4,500 units at $44 each- **Sept. 2:** Sale of 5,000 units- **Nov. 15:** Purchase of 2,000 units at $46 eachThe firm uses the **weighted average cost method** with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5.**Table Explanation:**Below the text is a table titled **"Schedule of Cost of Goods Sold Weighted Average Cost Flow Method."** This table is divided into three main sections: Purchases, Cost of Goods Sold, and Inventory, and further divided by different columns such as Date, Quantity, Unit Cost, and Total Cost.**Table Breakdown:**1. **Date:** The specific date for each transaction.2. **Quantity:** The number of units involved in each transaction (purchase/sale).3. **Unit Cost:** The cost per unit for purchases or cost per unit from inventory for sales.4. **Total Cost:** The total cost calculated by multiplying Quantity and Unit Cost.5. **Inventory:** This section tracks the remaining inventory after each transaction.**Key Transactions to Track:**- **Jan. 1:** Initial inventory entry.- **Apr. 19:** Sale of inventory.- **June 30:** Purchase of additional inventory.- **Sept. 2:** Sale of inventory.- **Nov. 15:** Purchase of additional inventory.- **Dec. 31:** Balances are calculated at the end of the year.**Visual Guide:**The table is currently empty and designed to be filled with the appropriate data as transactions occur over the year. This visual representation helps in determining the ongoing balance of inventory and the cost of goods sold based on the provided purchasing and selling dates.---Figure 1: **Table - Schedule of Cost of Goods Sold Weighted Average Cost Flow Method** (Detail each cell’s purpose to ensure clarity.)Using this structured approach ensures accurate tracking of inventory and costs throughout the year using the weighted average

Name: ### Weighted Average Cost Flow Method Under Perpetual Inventory Syste
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: ### Weighted Average Cost Flow Method Under Perpetual Inventory SystemConsider a particular item with the following inventory and sales data during the calendar year:- **Beginning Inventory:** 4,000 units at $40 each- **Sale 1:** 2,500 units- **Purc

Weighted average unit cost is a method of valuing the inventory wherein the unit cost is recomputed…

Business

Accounting

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 4,000 units at $40 Apr. 19 Sale 2,500 units June 30 Purchase 4,500 units at $44 Sept. 2 Sale 5,000 units Nov. 15 Purchase 2,000 units at $46 The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Schedule of Cost of Goods Sold Weighted Average Cost Flow Method Purchases Cost of Goods Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Jan. 1 Apг. 19 June 30 Sept. 2 Nov. 15 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 4,000 units at $40 Apr. 19 Sale 2,500 units June 30 Purchase 4,500 units at $44 Sept. 2 Sale 5,000 units Nov. 15 Purchase 2,000 units at $46 The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Schedule of Cost of Goods Sold Weighted Average Cost Flow Method Purchases Cost of Goods Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Jan. 1 Apг. 19 June 30 Sept. 2 Nov. 15 Dec. 31 Balances

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Weighted average cost flow method under perptual inventory system. The following units of a particular item were availabe for sale during the calendar year. Jan. 1 Inventory 4,000 units at $20 April 19 Sale 2,500 units June 30 Purchase 6,000 units at $24 Sept. 2 Sale 4,500 units Nov. 15 Purchase 1,000 units at $25 Instructions: The firm uses the weighted averaghe cost method with a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale. (chapter 7 question EX 7-9 page 380- immediate accounting I textbook)
FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: DATA Beginning inventory Sale First purchase Sale Second purchase Sale Ending inventory Quantity 8,100 5,000 15,400 12,600 15,900 13,100 8,700 REQUIRED: a. What is the total cost of the ending inventory according to FIFO? b. What is the total cost of the ending inventory according to LIFO? a. FIFO method b. LIFO method Price Inventory Cost Using formulas and cell references from the problem data, perform the required analysis. Formulas entered in the green cells orange cells. Transfer amounts to CNOWv2 for grading. $160 $300 $167 Formulas $300 $172 $300
What is the Weighted average cost per unit?
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 9,000 units at $50.00 Mar. 18 Sale 7,000 units May 2 Purchase 8,000 units at $56.50 Aug. 9 Sale 8,000 units Oct. 20 Purchase 4,000 units at $60.00 The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Round your "Unit Cost" answers to two decimal places. Date Jan. 1 Mar. 18 May 2 Aug. 9 Oct. 20 Dec. 31 Purchases Quantity 00 Balances Purchases Unit Cost Purchases Total Cost 00 Weighted Average Cost Flow Method Cost of Goods Sold Cost of Goods Sold Unit Cost Quantity 10
FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 23 units at $47 Sale 19 units at $68 First purchase 38 units at $49 Sale 36 units at $70 Second purchase 14 units at $50 12 units at $70 Sale The firm uses the perpetual inventory system, and there are 8 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO? $ b. What is the total cost of the ending inventory according to LIFO? $
Inventory Costing Methods and the Periodic MethodKay & Company experienced the following events in March: Date Event Units Unit Cost Total Cost Mar. 1 Purchased inventory 100 @ $16 $1,600 Mar. 3 Sold inventory 60 Mar. 15 Purchased inventory 100 @ 18 $1,800 Mar. 20 Sold inventory 40 If Kay & Company uses the weighted-average cost method, calculate the company’s cost of goods sold and ending inventory as of March 31 assuming the periodic method.(Round answer to two decimal places, if needed.) Weighted-average cost per unit Answer Cost of goods sold Answer Ending inventory Answer
LIFO (perpetual) Inventory Cost of Goods Purchased Cost of Goods Sold Cost of Inventory Remaining Numberof units Unit Cost Total Cost Numberof units Unit Cost Total Cost Numberof units Unit Cost
FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year: Beginning inventory 35 units at $43 Sale 28 units at $65 First purchase 30 units at $45 Sale 25 units at $67 Second purchase 26 units at $46 Sale 19 units at $67 The firm uses the perpetual inventory system, and there are 19 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO? b. What is the total cost of the ending inventory according to LIFO?
FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year: Beginning inventory 21 units at $41 10 units at $64 36 units at $43 34 units at $65 Second purchase 25 units at $46 Sale 20 units at $66 The firm uses the perpetual inventory system, and there are 18 units of the item on hand at the end of the year. Sale First purchase Sale a. What is the total cost of the ending inventory according to FIFO? X b. What is the total cost of the ending inventory according to LIFO?
FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 9,200 units at $150 Sale 5,400 units at $250 First purchase 12,800 units at $155 Sale 10,400 units at $250 Second purchase 14,100 units at $162 Sale 12,600 units at $250 The firm uses the perpetual inventory system, and there are 7,700 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO? b. What is the total cost of the ending inventory according to LIFO? 1,185,000
FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 23 units at $42 Sale 20 units at $67 First purchase 22 units at $43 Sale 17 units at $67 Second purchase 17 units at $44 Sale 13 units at $68 The firm uses the perpetual inventory system, and there are 12 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO? b. What is the total cost of the ending inventory according to LIFO?
Calculate the ending inventory and cost of goods sold dollar values for ABC Company for the month, considering the following transactions under three different cost allocation methods and using periodic inventory updating: |(a) First-in, first-out (FIFO) (b) Last-in, first-out (LIFO) Number of Unit Cost Sales Price Units Beginning Inventory 100 $20 Purchase 400 22 Sold 300 $30 Purchase 200 24 Sold 180 $35 Ending Inventory 220