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Please chart this out !

Please chart this out !-example-1

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Answer:

Purchases

Date Qty Unit Cost Total Cost

11 13 $47 $611

21 9 $60 $540

Cost of Sales

Date Qty Unit Cost Total Cost

14 18 $46.04 $828.72

25 10 $53.89 $538.90

$1,367.62

Inventory

Qty Unit Cost Total Cost

6 $53.89 $323.34

$323.34

Step-by-step explanation:

Perpetual Inventory method calculates the Costs of Sales together with the Inventory value after each and every transaction.

Weighted Average Cost calculates a new unit cost after each and every Purchase made. This unit cost is then used to determine the Cost of Sales and Inventory Value.

New Unit Cost Calculations

Unit Cost = Total Available Cost ÷ Units Available for Sale

April 11

Unit Cost = (12 x $45 + 13 x $47) ÷ 25 = $46.04

April 21

Unit Cost = (7 x $46.04 + 9 x $60) ÷ 16 = $53.89

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