Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for WCS12 are as follows: Oct. 1 Inventory 320 units at $10 13 Sale 180 units 22 Purchase 360 units at $12 29 Sale 300 units a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places. $ per unit b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your "average unit cost" to two decimal places. $ c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places. $ PreviousNext

a. $11

b. $3,300

c. $2,200

Explanation:

a. The computation of the weighted average unit cost after the October 22 purchase is shown below:

= Beginning units - sales units + purchased units

= 320 units - 180 units + 360 units

= 180 units + 360 units

= 540 units

And, the weighted average unit cost equals to

= (Beginning units price + purchase units price) : 2

= ($10 + $12) : 2

= $11

b. The computation of the cost of goods sold is shown below:

= Weighted average unit cost * October 29 units

= $11 * 300 units

= $3,300

c. The computation of the ending inventory is shown below:

= (Beginning units - sales units + purchased units - sales units) * Weighted average unit cost

= (320 units - 180 units + 360 units - 300 units) * $11

= 200 units * $11

= $2,200

a. The weighted average unit cost after the October 22 purchase: $11.44

b. The cost of goods sold on October 29: $3,432

c. The ending inventory on October: $2,288

Explanation:

a. The weighted average unit cost after the October 22 purchase:

We have the total inventory units after 22 October purchase = Opening inventory - Sales on the 13 + Purchase on the date = 320 - 180 + 360 = 500 units;

The weighted average unit cost = (Value of inventory before the purchase + value of inventory of the purchase) / Total inventory units after purchase

in which: Value of inventory before the purchase = (320-180) * 10 = $1,400

Value of inventory of the purchase = 12 * 360 = $4,320

=> The weighted average unit cost = (1,400 + 4,320) / 500 = $11.44

b. The cost of goods sold on October 29

Units sold * weighted average unit cost = 300 * 11.44 = $3,432

c. Ending inventory:

Ending units * weighted average unit cost = (the total inventory units after 22 October purchase - units sold on 29 October) * weighted average unit cost = (500 - 300) * 11.44 = $2,288.