Question

Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Monson uses a perpetual inventory system. Also, on December 15, Monson sells 29 units for $50 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 19 units @ $20.00 cost 36 units @ $30.00 cost 29 units @ $36.00 cost Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per unit costs to 2 decimal places.) Inventory Balance Weighted Average - Perpetual: Goods purchased # of Cost per Inventory Date units unit Value Cost of Goods Sold #of Cost of units unit Goods Sold sold Cost per Cost per of units Inventory Balance unit December 7 December 14 Average cost December 15 December 21 Average cost Totals

Answer 1

Solution:

Computation of ending inventory COGS under Weighted Average Cost - Trey Monson
Date	Beginning Inventory	Purchase	Cost of Goods Sold	Ending Inventory
Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
7-Dec	0	$0.00	$0	19	$20.00	$380	0	$0.00	$0	19	$20.00	$380
14-Dec	19	$20.00	$380	36	$30.00	$1,080	0	$0.00	$0	55	$26.55	$1,460
15-Dec	55	$26.55	$1,460	0	$0.00	$0	29	$26.55	$770	26	$26.55	$690
21-Dec	26	$26.55	$690	29	$36.00	$1,044	0	$0.00	$0	55	$31.53	$1,734
Total							29		$770	55		$1,734