Question

Weighted-Average Cost

Required information Exercise 6-5A Calculate inventory amounts when costs are declining (L06-3) [The following information applies to the questions displayed below.) During the year, Trombley Incorporated has the following inventory transactions. Number of Units Unit Cost $ 31 29 Date Transaction Jan. 1 Beginning inventory Mar. 4 Purchase Jun. 9 Purchase Nov. 11 Purchase 34 Total Cost $ 899 1,020 1,131 1,053 $4,103 For the entire year, the company sells 110 units of inventory for $39 each. Exercise 6-5A Part 3 3. Using weighted average cost, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. (Round "Average Cost per unit" to 2 decimal places and all other answers to the nearest whole number.) Cost of Goods Available for Sale Cost of Goods Sold - Weighted Average Cost Ending Inventory - Weighted Average Cost Weighted Average Cost Average Average Cost of Goods # of units # of units Cost per Available for Sold unit Sale Average Cost per Unit | # of units Cost of in Ending Goods Sold Inventory Cost per unit Ending Inventory $ 899 Beginning Inventory Purchases: Mar.4 Jun.9 Nov. 11 Total 1,020 1131 1,053 4,103 $

Answer 1

Requirement 3:

Weighted Average Cost	Cost of goods available for sale			Cost of goods sold-Weighted Average cost			Ending inventory - Weighted average cost
	# of units	Average Cost per unit	Cost of Goods Available for Sale	# of units	Average Cost per unit	Cost of Goods Available for Sale	# of units	Average Cost per unit	Cost of Goods Available for Sale
Beginning Inventory	29		$899
Purchases:
Mar. 4	34		$1,020
Jun. 9	39		$1,131
Nov. 11	39		$1,053
Total	141	$29.10	$4,103	110	$29.10	$3,201	31	$29.10	$902

Calculations:

Average cost per unit = $4,103/141 = $29.10

	Units
Jan.1	29
Mar.4	34
Jun.9	39
Nov.11	39
Total units available for sale	141
Less: Units sold	-110
Ending units	31