Jan. 1 Inventory 8,000 units at $40
Apr. 19 Sale 5,000 units
June 30 Purchase 12,000 units at $48
Sept. 2 Sale 9,000 units
Nov. 15 Purchase 2,000 units at $50
The firm uses the weighted average cost method with a perpetual inventory system.
Determine the cost of merchandise sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5.
Answer:
Date
Purchases Cost of Merchandise Sold Inventory
Quantity
Unit
Cost
Total
Cost Quantity
Unit
Cost
Total
Cost Quantity Unit Cost
Total
Cost
Jan. 1 8,000 40.00 320,000
Apr. 19 5,000 40.00 200,000 3,000 40.00 120,000
June 30 12,000 48.00 576,000 15,000 46.40 696,000
Sept. 2 9,000 46.40 417,600 6,000 46.40 278,400
Nov. 15 2,000 50.00 100,000 8,000 47.30 378,400
Dec. 31 Balances 617,600 8,000 47.30 378,400