A company reports the following merchandise purchases and sales for the month of May.Units Acquired at Cost360 units @ $15 = $5,400280 units @ $18 = $5,040DateMay 1May 5May 10May 20May 25ActivitiesMay 1May 5May 20PurchasePurchaseSalesPurchaseSalesWeighted average - PeriodicTotalCost of Goods Available for SaleThere was no beginning inventory. If the company uses the weighted average periodic method, what would be the cost of encinventory?Note: Round average cost per unit to two decimal places.Average Cost of Goods# of units Cost per Available forunitSale360$15280 $ 18360$ 221,000SA360 units @ $22 $7,9205,4005,0407,92018,360=Cost of Goods SoldAverageCost perUnit# of unitssoldCost ofGoods Sold$Units sold at RetailO396 units @ $50404 units @ $50Ending Inventory# of units Averagein ending Costinventory per unitEndingInventorySA0

It is an inventory valuation method. Under the weighted average method, the inventory is based on…

A company reports the following merchandise purchases and sales for the month of May. Units Acquired at Cost 360 units @ $15 = $5,400 280 units @ $18= $5,040 360 units @ $22 = $7,920 Date May 1 May 5 May 10 May 20 May 25 May 1 May 5 May 20 Activities Purchase Purchase Sales Purchase Sales Weighted average - Periodic Total There was no beginning inventory. If the company uses the weighted average periodic method, what would be the cost of en inventory? Note: Round average cost per unit to two decimal places. Cost of Goods Available for Sale Average Cost of Goods # of units Cost per Available for unit Sale 360 $ 15 280 $ 18 360 $ 22 1,000 $ 5,400 5,040 7,920 18,360 Cost of Goods Sold Average Cost per Unit # of units sold Cost of Goods Sold $ Units sold at Retail 0 396 units @ $50 404 units @ $50 Ending Inventory # of units Average in ending Cost inventory per unit Ending Inventory $ 0

A company reports the following merchandise purchases and sales for the month of May. Units Acquired at Cost 360 units @ $15 = $5,400 280 units @ $18= $5,040 360 units @ $22 = $7,920 Date May 1 May 5 May 10 May 20 May 25 May 1 May 5 May 20 Activities Purchase Purchase Sales Purchase Sales Weighted average - Periodic Total There was no beginning inventory. If the company uses the weighted average periodic method, what would be the cost of en inventory? Note: Round average cost per unit to two decimal places. Cost of Goods Available for Sale Average Cost of Goods # of units Cost per Available for unit Sale 360 $ 15 280 $ 18 360 $ 22 1,000 $ 5,400 5,040 7,920 18,360 Cost of Goods Sold Average Cost per Unit # of units sold Cost of Goods Sold $ Units sold at Retail 0 396 units @ $50 404 units @ $50 Ending Inventory # of units Average in ending Cost inventory per unit Ending Inventory $ 0

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 4BE: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...

See similar textbooks

Similar questions

Calculate the cost of goods sold dollar value for A65 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).
Akira Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $25 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Trini Company had the following transactions for the month. Calculate the cost of goods sold dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Alternative Inventory Methods Park Companys perpetual inventory records indicate the following transactions in the month of June: Required: 1. Compute the cost of goods sold for June and the inventory at the end of June using each of the following cost flow assumptions: a. FIFO b. LIFO c. Average cost (Round unit costs to 3 decimal places and other amounts to the nearest dollar.) 2. Next Level Why are the cost of goods sold and ending inventory amounts different for each of the three methods? What do these amounts tell us about the purchase price of inventory during the year? 3. Next Level Which method produces the most realistic amount for net income? For inventory? Explain your answer. 4. Next Level If Park uses IFRS, which of the previous alternatives would be acceptable and why?
Carla Company uses the perpetual inventory system. The following information is available for January of the current year when Carla sold 1,600 units of inventory on January 14. Using the FIFO method, calculate Carlas cost of goods sold for January and its January 31 inventory.
Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
Bleistine Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $50 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
PERPETUAL: LIFO AND MOVING-AVERAGE Kelley Company began business on January 1, 20-1. Purchases and sales during the month of January follow. REQUIRED Calculate the total amount to be assigned to cost of goods sold for January and the ending inventory on January 31, under each of the following methods: 1. Perpetual LIFO inventory method. 2. Perpetual moving-average inventory method.
Beginning inventory, purchases, and sales for Item Zebra 9x are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on April 27 and (b) the inventory on April 30.
Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of the merchandise sold on October 29, and (c) the inventory on October 31.
Trini Company had the following transactions for the month. Calculate the ending inventory dollar value for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Beginning inventory, purchases, and sales for Item Foxtrot are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on March 27 and (b) the inventory on March 31.