Question

Calculating Weighted-Average Cost Inventory Values The Mann Corporation began operations in 2015. Information relating to the company’s purchases of inventory and sales of products for 2015 and 2016 is presented below 2015 March 1 Purchase 200 units @ $10 per unit June 1 Sold 120 units @ $25 per unit September 1 Purchase 100 units @ $14 per unit November 1 Sold 130 units @ $25 per unit 2016 March 1 Purchase 100 units @ $16 per unit June 1 Sold 80 units @ $30 per unit September 1 Purchase 100 units @ $18 per unit November 1 Sold 100 units @ $35 per unit Calculate the weighted-average cost of goods sold and ending inventory for 2015 and 2016 assuming use of (a) the periodic method and (b) the perpetual method. a. Weighted-Average Periodic. Do not round your cost per unit. Do not round until your final answer. Round your answers to the nearest whole number. 2015 Cost of goods sold $Answer Ending inventory $Answer 2016 Cost of goods sold $Answer Ending inventory $Answer b. Weighted-Average Perpetual. Do not round your cost per unit. Do not round until your final answer. Round your answers to the nearest whole number. 2015 Cost of goods sold $Answer Ending inventory $Answer 2016 Cost of goods sold $Answer Ending inventory $Answer

Answer 1

For 2015:

				Closing inventory (Units)	Closing inventory ($)
01-Mar-15	Purchase	200 Units @10	2,000.00
June 01,2015	Sold	120 Units @25 per units		80.00	800.00
01-Sep-15	Purchase	100 Units @14	1,400.00	180.00	2,200.00
01-Nov-15	Sold	130 units @25		50.00	611.11

Closing inventory for 2015 is $611.11

				Closing inventory (Units)	Closing inventory ($)
01-Mar-15	Purchase	200 Units @10	2,000.00
June 01,2015	Sold	120 Units @25 per units		80.00	800.00
01-Sep-15	Purchase	100 Units @14	1,400.00	180.00	2,200.00
01-Nov-15	Sold	130 units @25		50.00	611.11
Total cost of purchase			3,400.00
Less: Closing inventory			611.11
Cost of goods sold			2,788.89

For 2016:

				Closing inventory (Units)	Closing inventory ($)
01-Nov-15	Sold	130 units @25		50.00	611.11
01-Mar-16	Purchase	100 units @16	1,600.00	150.00	2,211.11
01-Jun-16	Sold	80 units @30		70.00	1,031.85
01-Sep-16	Purchase	100 units @18	1,800.00	170.00	2,831.85
01-Nov-16	Sold	100 units @35		70.00	1,166.06

Closing inventory for 2016 $1,166.06

For 2016	Amount ($)
Cost of goods sold {(611.11+1600+1800)-1166.06}	2,845.05
{Opening stock + purchases ) - Closing stock}