Perpetual Inventory Using Weighted Average Beginning invento

Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for Meta-B1 are as follows: 100 units at $400 70 units 120 units at $450 110 units July 1 Inventory 12 Sale 23 Purchase 26 Sale a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the July 23 purchase per unit b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of the merchandise sold on July 26. Assuming a perpetual inventory system and using the weighted average method, determine the Inventory on July 31

Solution

a

100 units @ $400 =$40,000

120 units @ $450 =$54,000

=(40000+54000)/(220)

=427.27

b

427.27*110 unis

=$47000

c

Inventory Value =100-70+120-110 =40 units

=40 units * 427.27

=17090.91