Question

USE OF AVERAGE COST METHOD

			Unit cost /		Balance
Date	Explanation	Units	Price	Total Costs	in units
02-Jun	Purchase	225	$            60	$        13,500	225
03-Jun	Purchase	350	$            80	$        28,000	575
10-Jun	Sale	300	$          100	$        30,000	275
15-Jun	Purchase	900	$            85	$        76,500	1175
25-Jun	Sales	325	$          110	$        35,750	850

What is total value of ending inventory after the purchase of June 3rd? $ Answer
What is the unit cost of ending inventory after the June 15th purchase?  $ Answer
What is the total cost of goods sold at the end of June?  $ Answer
What is the ending inventory in units at the end of June? Answer
What is the ending inventory unit price at the end of June? $ Answer
What is the total $ value of ending inventory at the end of June?  $Answer

Answer 1

STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL WEIGHTED AVERAGE METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
02-Jun	225	60	13500				225	60	13500
03-Jun	350	80	28000				225	60	13500
							350	80	28000
Average							575	72.17	41500
10-Jun				300	72.17	21651	275	72.17	19849
15-Jun	900	85	76500				275	72.17	19849
							900	85	76500
Average							1175	82	96349
25-Jun				325	82	26650	850	82	69700
TOTAL	1475		118000	625		48301	850	82	69700
Final Answer:
a. Total Value of inventory after purchase of June 03.	41500
b. Unit cost after June 15 purchase		82
c. Total Cost of goods sold for June:		48301
d. Units of ending inventory at the end of June:	850
e. Unit price of ending inventory:		82
f. Total value of ending inventory at the end of June:	69700