Question

Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.

Date			Transactions	Units				Unit Cost				Total Cost
October	1		Beginning inventory		6			$	850				$	5,100
October	4		Sale		4
October	10		Purchase		5				860					4,300
October	13		Sale		3
October	20		Purchase		4				870					3,480
October	28		Sale		7
October	30		Purchase		8				880					7,040
													$	19,920

Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31. (Round your intermediate and final answers to 2 decimal places.)

Ending inventory-

Cost of goods sold-

Answer 1

Calculation of Cost of goods available for sale:

		A	B	A x B
Date	Transaction	Units	Unit Cost	Total Cost
Oct-01	Beginning inventory	6	$850	$5,100
Oct-10	Purchase	5	$860	$4,300
Oct-20	Purchase	4	$870	$3,480
Oct-30	Purchase	8	$880	$7,040
		23		$19,920

Cost of goods available for sale = $19,920

Number of units available for sale = 23

weighted-average cost per unit = Cost of goods available for sale/ Number of units available for sale

= 19,920/23

= $866.09

Number of units sold = 14

Cost of goods sold = Number of units sold x weighted-average cost per unit

= 14 x 866.09

= $12,125.26

Ending inventory units = Number of units available for sale- Number of units sold

= 23-14

= 9

Cost of ending inventory = Ending inventory units x weighted-average cost per unit

= 9 x 866.09

= $7,794.81

Ending inventory = $7,794.81

Cost of goods sold =$12,125.26

Please give a positive rating if you are satisfied with this solution and if you have any query kindly ask.

Thanks!!!