Perpetual Inventory

Question

Perpetual inventory using weighted average

Beginning inventory, purchases, and sales for WCS12 are as follows:

DateLine Item DescriptionValue
Oct. 1	Inventory	300 units at $11
Oct. 13	Sale	160 units
Oct. 22	Purchase	360 units at $13
Oct. 29	Sale	300 units

a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places.

fill in the blank 1 of 1$ per unit

b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your "average unit cost" to two decimal places.

fill in the blank 1 of 1$

c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places.

fill in the blank 1 of 1$

Answer 1

a) we subtract 160 from the 300 unit purchased on the 1st, multiple it by $11, then add the 360 units multiplied by $13 then divide by total units

(11(300-160)+360*13)/(300-160+360) = $12.44

b) now that we have the average cost of units as of Oct 22nd we take that and multiply by the amount sold on the 29th

12.44 * 300 = $3732

c) now all that remains is taking your average cost and multiplying it by the units remaining

12.44 * (300-160+360-300) = $2488