The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 4,000 units at $20

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. Determine the cost of merchandise sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5.

Answer:

Cost of Merchandise Sold Unit  Total Unit  Total  Total Quantity Cost  Cost Quantity Cost  Cost Quantity Unit Cost  Cost  Jan. 14,000 20.00 80,000 Apr. 192,500 20.00 50,000 1,500 20.00 30,000 June 30 6,000 24.00 144,0007,500 23.20 174,000 Sept. 24,500 23.20 104,400 3,000 23.20 69,600 Nov. 15 1,000 25.00 25,0004,000 23.65 94,600 Dec. 31 Balances154,400 4,000 23.65 94,600