Question

Weighted Average???

을n ucation.com apter 5 Problems Seved 5 Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales trans Units Sold at Retail DateActivities Jan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Units Acquired at Cost 600 units $60 per unit 480 units $57 per unit 120 units $42 per unit 5 nts 785 units $80 per unit 180 units $65 per unit 470 units $63 per unit 01:39:05 650 units $80 per unit Totals 1,850 units 1,435 units eBook Required: 1. Compute cost of goods available for sale and the number of units available for sale. Print Cost of goods available for sale $109.71 Number of units available for sale1.850 units eferences 2. Compute the number of units in ending inventory.

Answer 1

Answer:

1

cost of goods avialable for sale	109710
Units   avalable for sales	1850

Working notes for the above answer:

Particular	Units avalable for sales	Cost per Unit	cost of goods avialable for sale
	A	B	C=A*B
beg.	600	60	36000
Add:Purchase
Feb.10	480	57	27360
Mar.13	120	42	5040
Aug.21	180	65	11700
Sep.5	470	63	29610
	1850		109710

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2

Weighted average perpetual
	Goods purchasesd			Cost of goods sold				Inventory balance
Date	Number of units	at	Cost per unit	Number of units	at	Cost per unit	Cost of goods sold	Number of units	at	Cost per unit	Inventory balance
Jan.1	600		60					600		60	36000
Feb.10	480		57					600		60	36000
								480		57	27360
								1080		58.67	63360
Weighted average cost =63360/1080 =58.67
Mar.13	120		42
								600		60	36000
								480		57	27360
								120		42	5040
								1200		57.00	68400
Weighted average cost =68400/1200 =57
Mar.15				785		57.00	44745	415		57.00	23655
Aug.21	180		65					415		57	23655
								180		65	11700
								595		59.42	35355
Weighted average cost =36355/595=59.42
								415		57	23655
Sep.5	470		63					180		65	11700
								470		63	29610
								1065		61.00	64965
Weighted average cost =64965/1065=61
Sep.10				650		61.00	39650	415			25315
Total							84395				25315