Question

Using the weighted average method of perpetual inventory costing and the following information:
Compute the cost materials used and the cost of the July 31 inventory. (Round unit prices to four decimals places and totals to the nearest whole dollar)

Cost of the materials used
Cost of the July 31 inventory

Check My Work eBook Exercise 2-9 Welghted Average Costing Using the weighted average method of perpetual inventory costing and the following information: July 1 Balance on hand, 1,000 yd of linen @ $4.00 each. 3 Issued 250 yd. 5 Received 500 yd @ $4.50 each. 6 Issued 150 yd. 10 Issued 110 yd. 11 Factory returned 10 yd, which were issued on the 10th, to the storeroom. 15 Received 500 yd @ $5.00 each. 20 Returned 300 yd to the vendor from the July 15 purchase. 26 issued 600 yd. Compute the cost of materials used and the cost of the July 31 inventory. (Round unit prices to four decimal places and totals to the nearest whole dollar.) Cost of materials used Cost of the July 31 inventory 9 M Nf

Answer 1

				RECEIPTS			ISSUES			INVENTORY BALANCE
		Date	Transaction	Quantity	Rate	Amount	Quantity	Rate	Amount	Quantity	Rate	Amount
		July,1	Balance on hand							1000	$4.00	$4,000
		July,3	Issue				250	$4.00	$1,000	750	$4.00	$3,000
		July,5	Receipt	500	$4.50	$2,250				1250	$4.20	$5,250	Weighted Average Rate=(3000+2250)/1250
		July,6	Issue				150	$4.20	$630	1100	$4.20	$4,620
		July,10	Issue				110	$4.20	$462	990	$4.20	$4,158
		July,11	Returned to Stores	10	$4.20	$42				1000	$4.20	$4,200
		July,15	Receipt	800	$5.00	$4,000				1800	$4.56	$8,200	Weighted Average Rate=(4200+4000)/1800
		July,20	Returned to Vendor				300	$5.00	$1,500	1500	$4.47	$6,700	Weighted Average Rate=(8200-1500)/1500
		July,26	Issue				600	$4.47	$2,680	900	$4.47	$4,020
			TOTAL	1310		$6,292	1410		$6,272
	COST OF MATERIALS ISSUED	$4,730	(6272- Returns)=(6272-42-1500)
	COST OF THE JULY 31, INVENTORY	$4,020