Question

Moving Weighted Average Method Cost per Unit $91 $106 Date 8/1 8/3 8/14 B/17 8/28) 8/30 Transaction Beg. bal Purchase Sold Purchase Purchase Sold Quantity 10 15 20 20 10 $115 $119 23 Goods purchased Inventory of units Cost per unit Value Cost of Goods Sold of units Cost of sold Cost per unit) Goods Sold Date August 1 910 August 31 15 106 1590 Inventory Balance Inventory of units Cost per unit Balance 10 91 10 91 910 15 106 1,590 25 100 2,500 5 500 August 14 o 100.00 2,000.00 August 17 20 115 2300 20 115 TU August 28 10 119 1190 s 20 10 35 12 115 119 113 1 500 2,300 2,800 500 2.300 1,190 ,990 ,368 23 124.00 2,622.00 Total 4,622.00 1,368.00 CGS E

Answer 1

Ans.		Goods Purchased			Cost of goods sold			Inventory Balance
		# of Units	Cost per	Inventory	# of units	Cost per	Cost of	# of Units in	Cost per	Inventory
	Date		Unit	Value	Sold	Unit	Goods sold	Ending inventory	Unit	Balance
	Aug-01							10	$91	$910
	Aug-03	15	$106	$1,590				10	$91	$910
								15	$106	$1,590
								25	$100	$2,500
	Aug-14				20	$100	$2,000	25	$100	$2,500
								-20	$100	-$2,000
								5	$100	$500
	Aug-17	20	$115	$2,300				5	$100	$500
								20	$115	$2,300
								25	$112	$2,800
	Aug-28	10	$119	$1,190				25	$112	$2,800
								10	$119	$1,190
								35	$114	$3,990
	Aug-30				23	$114	$2,622	35	$114	$3,990
								-23	$114	-$2,622
								12	$114	$1,368
	Total				Cost of goods sold		$4,622	Ending inventory		$1,368
	*Weighted average rate is calculated by using the formula of (Total available balance / Total units available).
	*All purchases are added in inventory balance and a new cost per unit is calculated.
	*Sales are made on the unit cost of inventory balance on previous date.