Beginning inventory, purchases, and sales for Meta-B1 are as follows: July 1 Inventory 100 units at $400

Beginning inventory, purchases, and sales for Meta-B1 are as follows:

July  1 Inventory 100 units at $400

12 Sale   70 units

23 Purchase 120 units at $450

26 Sale 110 units

Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the July 23 purchase, (b) the cost of the merchandise sold on July 26, and (c) the inventory on July 31.

Answer:

a. Weighted average unit cost: $440 Inventory total cost after purchase on July 23: 30 units @ $400 $12,000 120 units @ $450 54,000 150 $66,000 Weighted average unit cost = $440.00 ($66,000 ÷ 150 units) b. Cost of merchandise sold (July 26): $48,400 (110 units × $440.00) c. Inventory, July 31: $17,600 (40 units @ $440.00)