Question

Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 4,000 units at $20 Apr. 19 Sale 2,500 units June 30 Purchase 6,000 units at $24 Sept. 2 Sale 4,500 units Nov. 15 Purchase 1,000 units at $25 The firm uses the weighted average cost method with a perpetual inventory system.

Answer 1

Instructions are listed below.

Step-by-step explanation:

Giving the following information:

The following units of a particular item were available for sale during the calendar year:

Jan. 1 Inventory 4,000 units at $20

Apr. 19 Sale 2,500 units

June 30 Purchase 6,000 units at $24

Sept. 2 Sale 4,500 units

Nov. 15 Purchase 1,000 units at $25

Units sale= 7,000

Inventory= 4,000

Inventory= [(20 + 24 + 25)/3]*4,000= $92,000

COGS= 2,500*20 + 4,500*22= $149,000