Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular...
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Accounting
Weighted Average Cost Flow Method Under Perpetual Inventory System
The following units of a particular item were available for sale during the calendar year:
Jan. 1
Inventory
10,000
units at $75.00
Mar. 18
Sale
8,000
units
May 2
Purchase
18,000
units at $77.50
Aug. 9
Sale
15,000
units
Oct. 20
Purchase
7,000
units at $80.25
The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods 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 Goods Sold Weighted Average Cost Flow Method
Purchases
Cost of Goods Sold
Inventory
Date
Quantity
Unit Cost
Total Cost
Quantity
Unit Cost
Total Cost
Quantity
Unit Cost
Total Cost
Jan. 1
$
$
Mar. 18
$
$
May 2
$
$
Aug. 9
Oct. 20
Dec. 31
Balances
$
$
$
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