Question

Date Transaction Units Cost Sell 1/1 Beginning inventory 1,700 $28 3/6 Sale 1,100 $38 6/26 Purchase 3,100 29 8/2 Purchase 2,100 30 10/31 Sale 3,500 40

(e) Periodic system, weighted-average cost flow.

(f) Perpetual system, moving-average cost flow.

Answer 1

Solution e:

Weighted Average (Periodic)
Particulars	Units	Cost per unit	Total
Beginning Inventory	1700	$28.00	$47,600.00
Purchases:
26-Jun	3100	$29.00	$89,900.00
2-Aug	2100	$30.00	$63,000.00
Total Purchases	5200		$152,900.00
Goods available for Sale	6900	$29.06	$200,500.00
Cost of goods sold	4600	$29.06	$133,667
Ending Inventory	2300		$66,833

Solution f:

Computation of ending inventory COGS under Perpetual moving average cost flow
Date	Beginning Inventory			Purchase			Cost of Goods Sold			Ending Inventory
	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
1-Jan	1700	$28.00	$47,600	0	$0.00	$0	0	$0.00	$0	1700	$28.00	$47,600
6-Mar	1700	$28.00	$47,600	0	$0.00	$0	1100	$28.00	$30,800	600	$28.00	$16,800
26-Jun	600	$28.00	$16,800	3100	$29.00	$89,900	0	$0.00	$0	3700	$28.84	$106,700
2-Aug	3700	$28.84	$106,700	2100	$30.00	$63,000	0	$0.00	$0	5800	$29.26	$169,700
31-Oct	5800	$29.26	$169,700	0	$0.00	$0	3500	$29.26	$102,405	2300	$29.26	$67,295
Total							4600		$133,205	2300		$67,295