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)

Beginning inventory, purchases, and sales for Item Delta are as follows: July 1 Inventory 50 units at $15

Beginning inventory, purchases, and sales for Item Delta are as follows:

July  1 Inventory 50 units at $15

 7 Sale 44 units

15 Purchase 90 units at $18

24 Sale 40 units

Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on July 24 and (b) the inventory on July 31.

Answer:

a. Cost of merchandise sold (July 24): 6 units @ $15 $ 90 34 units @ $18 612 40 $702 b. Inventory, July 31: $1,008 = 56 units × $18

Assume that the business in Exercise 7-9 maintains a perpetual inventory system. Determine the cost of merchandise sold for each sale

Assume that the business in Exercise 7-9 maintains a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the data in the form illustrated in Exhibit 4.

Answer:

Inventory Unit  Total Unit  Total  Total Quantity Cost  Cost Quantity Cost  Cost Quantity Unit Cost  Cost 14,000 20.00 80,000 192,500 20.00 50,000 1,500 20.00 30,000 30 6,000 24.00 144,0001,500 20.00 30,000 6,000 24.00 144,000 24,500 24.00 108,000 1,500 20.00 30,000 1,500 24.00 36,000 15 1,000 25.00 25,0001,500 20.00 30,000 1,500 24.00 36,000 1,000 25.00 25,000 31 Balances 158,000 91,000