Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for WCS12 are as follows: Oct. 1 Inventory 320 units at $10 13 Sale 180 units 22 Purchase 360 units at $12 29 Sale 300 units a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places. $ per unit b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your "average unit cost" to two decimal places. $ c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places. $ PreviousNext

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andromache andromache · Answer 1 · 2019-10-16T07:23:48+02:00

Answer:

a. $11

b. $3,300

c. $2,200

Explanation:

a. The computation of the weighted average unit cost after the October 22 purchase is shown below:

= Beginning units - sales units + purchased units

= 320 units - 180 units + 360 units

= 180 units + 360 units

= 540 units

And, the weighted average unit cost equals to

= (Beginning units price + purchase units price) ÷ 2

= ($10 + $12) ÷ 2

= $11

b. The computation of the cost of goods sold is shown below:

= Weighted average unit cost × October 29 units

= $11 × 300 units

= $3,300

c. The computation of the ending inventory is shown below:

= (Beginning units - sales units + purchased units - sales units) × Weighted average unit cost

= ( 320 units - 180 units + 360 units - 300 units) × $11

= 200 units × $11

= $2,200

Tundexi Tundexi · Answer 2 · 2022-01-03T12:55:05+01:00

a. Weighted Average Unit Costs = [360 units×$12 + (320-180)×$10] / [360+(320-180)]units}

Weighted Average Unit Costs = $5720 / 500 units

Weighted Average Unit Costs = $11.44

b. Cost of Good Sold on 29 October = 300 units * Weighted Average Unit Costs

Cost of Good Sold on 29 October = 300 units × $11.44

Cost of Good Sold on 29 October = $3,432

c. Inventory on October 31 = (500 - 300) × $11.44

Inventory on October 31 = 200 units * $11.44

Inventory on October 31 = $2,288