Question

Beginning inventory, purchases, and sales data for cell phones are as follows:? ?

??

	July 1	Inventory .		20 units	@	$70
	10	Purchase		30 units	@	$80
	15	Sale		30 units
	18	Purchase		30 units	@	$100
	23	Sale		25 units

?

Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of merchandise sold and ending inventory using Weighted-Average.? Weighted Average

Answer 1

Ending Inventory Balance      =       $2260

Cost of merchandise sold        =       $4540

WEIGHED AVERAGE METHOD INVENTORY SCHEDULE

Date	Qty Purchased	Unit Cost	Total Cost	Qty Sold	Unit cost	Cost of goods sold	Ending Inv.Qty	Unit Cost	Total Inventory
July 1							20	70	1400
July 10	30	80	2400				20	70	1400
							30	80	2400
July 15				30	76	2280	20	76	1520
July 18	30	100	3000				20	76	1520
							30	100	3000
July 23				25	90.40	2260	25	90.40	2260
TOTAL						4540	25		2260

July 15 Weighted Average Cost = (1400+2400)/50 = 76

July 23 Weighted Average Cost = (1520+3000)/50= 90.40