Required information[The following information applies to the questions displayed below.]A company began January with 8,000 units of its principal product. The cost of each unit is $7. Inventory transactions forthe month of January are as follows:Date of PurchaseJanuary 10January 18TotalsSalesUnits6,0008,00014,000Date of SaleJanuary 5January 12January 20TotalIncludes purchase price and cost of freight.PurchasesUnit Cost*Units4,0002,0005,00011,000$8911,000 units were on hand at the end of the month.Total Cost$ 48,00072,000$ 120,000 4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system.Average CostBeginning InventoryPurchases:January 10January 18TotalCost of Goods Available for SaleCost ofGoodsNumber Unitof units Cost Available forSale8,000 $7.006,000 $8.008,000 $9.0022,000$ 56,000$48,00072,000176,000Cost of Goods Sold - Average CostAverageCost perUnitNumber ofunits soldCost ofGoods Sold$0Ending Inventory - Average CostNumber ofAverageunits inendinginventoryCost perunitEndingInventory$0

Under the Weighted Average Method, the cost is considered to be average at the time of sale. In this…

Required information [The following information applies to the questions displayed below.] A company began January with 8,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Sales Units Date of Sale January 5 January 12 January 20 Total 6,000 8,000 14,000 * Includes purchase price and cost of freight. Purchases Unit Cost* Units 4,000 2,000 5,000 11,000 $8 9 11,000 units were on hand at the end of the month. Total Cost $ 48,000 72,000 $ 120,000

Required information [The following information applies to the questions displayed below.] A company began January with 8,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Sales Units Date of Sale January 5 January 12 January 20 Total 6,000 8,000 14,000 * Includes purchase price and cost of freight. Purchases Unit Cost* Units 4,000 2,000 5,000 11,000 $8 9 11,000 units were on hand at the end of the month. Total Cost $ 48,000 72,000 $ 120,000

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 3AP

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Calculate the cost of goods sold dollar value for A67 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
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