/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} 33PGB_3 Exercise World began January wit... [FREE SOLUTION] | 91影视

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Chapter 6: 33PGB_3 (page 369)

Exercise World began January with merchandise inventory of 90 crates of vitamins that cost a total of \(5,850. During the month, Exercise World purchased and soldmerchandise on account as follows:

Jan. 2 Purchase 130 crates @ \) 76 each

5 Sale 140 crates @ \( 100 each

16 Purchase 170 crates @ \) 86 each

27 Sale 180 crates @ $ 104 each

Requirements

3. Prepare a perpetual inventory record, using the weighted-average inventory costingmethod, and determine the company鈥檚 cost of goods sold, ending merchandiseinventory, and gross profit. (Round weighted-average cost per unit to the nearestcent and all other amounts to the nearest dollar.)

Short Answer

Expert verified

Answer

Cost of goods sold: $24,840

Ending Inventory: $5,740

Gross Profit: $7,880

Step by step solution

01

Perpetual inventory table under the weighted average method

Purchases

Cost of goods sold

Inventory on hand

Date

Qty

Unit cost

Total Cost

Qty

Unit cost

Total Cost

Qty

Unit Cost

Total Cost

Jan 1

90

$65

$5,850

Jan 2

130

$76

$9,880

220

$72

$15,730

Jan 5

140

$72

$10,080

80

$72

$5,760

Jan 16

170

$86

$14,620

250

$82

$20,380

Jan 27

180

$82

$14,760

70

$82

$5,740

Total

300

$24,500

320

$24,840

70

$82

$5,740

02

Computation of gross profit

TotalRevenue=Salevalueof5thJan+Salevalueof27thJan=(140脳$100)+(180脳$104)=$14,000+$18,720=$32,720GrossProfit=TotalRevenue-Costofgoodssold=$32,720-$24,840=$7,880

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Most popular questions from this chapter

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