Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular...
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Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for sale during the calendar year: 30,000 units at $30.00 Jan. 1 Mar. 18 Inventory Sale 24,000 units May 2 Purchase 54,000 units at $31.00 Aug. 9 Sale 45,000 units Oct. 20 Purchase 21,000 units at $32.10 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. Round unit cost to two decimal places, if necessary. Schedule of Cost of Merchandise Sold Weighted Average Cost Flow Method Cost of Merchandise Sold Quantity Unit Cost Total Cost Inventory Purchases Unit Cost Date Quantity Total Cost Quantity Unit Cost Total Cost Jan. 30,000 30 900,000 Mar. 24,000 6,000 30 180,000 30 ~ 720,000 May 54,000 60,000 31 x 1,860,000 1,674,000 45,000 31 x 1,395,000 x 15,000 31 x 465,000 Oct. 21,000 32.10 674,100 36,000 ~ 32.10 x 1,155,600 23 Balances Balances 36,000 2,115,000 x 32.10 x 3,405,000
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