Weighted Average Cost Flow Method Under Perpetual Inventory

Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for sale during the calendar year: an. nentory Mar. 18 Sale May 2 Purchase Aug. 9 Sale Oct. 20 Purchase The firm uses the wcighted average cost method with a perpetual inventory system. Determine the cost of merchandise sold for cach sale and the inventory balance after cach sale. Present the data in the form illustrated in Exhibit S. Round unit cost to two decimal places, if necessary 30,000 units at $30.00 24,000 units 54,000 units at $31.00 45,000 units 21,000 units at $32.10 Schedule of Cost of Sold Weighted Average Cost Flow Method Cost of Merchandise Sold Purchases Inventory Date Quantity Unit Cost Total Cost Unit Cost Total Cost Quantity Unit Cost Total Cost an. 1 Mar. 18 May 2 Aug. 9 Oct. 20 Dec. 31 Balances

Solution

Schedule of cost of goods sold :

	Purchases	Cost of merchandise sold	Inventory
Date	Quantity	Unit cost	Total cost	Quantity	Unit cost	Total cost	Quantity	Unit cost	Total cost
Jan 1							30000	30	900000
Mar 18				24000	30	720000	6000	30	180000
May 2	54000	31	1674000				60000	30.90	1854000
Aug 9				45000	30.9	1390500	15000	30.9	463500
Oct 20	21000	32.10	674100				36000	31.6	1137600
Total						2110500			1137600