Answered

Westonci.ca is the premier destination for reliable answers to your questions, provided by a community of experts. Explore thousands of questions and answers from a knowledgeable community of experts on our user-friendly platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Assume that three identical units of merchandise were purchased during October, as follows:
Units Cost
Oct. 5 Purchase 1 $5
12 Purchase 1 13
28 Purchase 1 15
Total 3 $33
Assume one unit is sold on October 31 for $28. Determine cost of merchandise sold, gross profit, and ending inventory under the average cost method.

Sagot :

Answer:

Cost of Merchandise sold: $11

Gross Profit: $17

Ending inventory: $22

Explanation:

STATEMENT SHOWING INVENTORY RECORD UNDER WEIGHTED AVERAGE METHOD          

RECIEPTS   COST OF GOODS SOLD   BALANCE  

DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $

balance            

05-Oct 1 5 5      

12-Oct 1 13 13      

28-Oct 1 15 15      

TOTAL 3 11 33 1 11 11 2 11 22

         

Gross Profit:          

Sales revenue   28      

Less: Cost of good sold   11      

Gross Profit:   17      

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.