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Question 2 [12 points]

Zcom Inc. employs a perpetual inventory system using weighted average. Zcom Inc. has the following purchases and sales during the year ended December 31, 2014. Assume all purchases and sales are for cash.

Question 2 [12 points] Zcom Inc. employs a perpetual inventory system using weighted average. Zcom Inc. has the following purchases and sales during the year ended December 31, 2014. Assume all purchases and sales are for cash. Inventory and Purchases Sales Beginning: 300 units @ $17/unit May 23: 200 units February 6: 200 units @ $18/unit November 17: 300 units September 22: 200 units @ $19/unit The units have a selling price of $20.00 per unit. Calculate weighted average cost per unit of merchandise inventory to the nearest cent. a) Calculate the cost of goods available for sale, the number of units available for sale, and the units remaining in ending inventory. Cost of Goods available for sale: Units available for sale: Units remaining in ending inventory: c) Prepare journal entries to record (a) the purchase on September 22 and (b) the sale on November 17. Enter the transaction letter as the description when preparing a journal entry. When a transaction requires two separate journal entries, use the same letter for both descriptions. Dates must be entered in the format dd/mmm (ie. 15/Jan).) General Journal Date Account/Explanation F Debit Credit Page GJS + - + b) Please fill in the table by calculating the dollar value of cost of goods sold and ending inventory as well as the gross profit earned by Zcom Inc. Cost of Goods Sold: Ending Inventory Gross Profit This schedule is provided for calculation purposes only and is not marked. Purchases/Transportation-In/ Cost of Goods Sold/ (Purchase Returns/Discounts) (Returns to Inventory) Date Units Cost/Unit Total $ Units Cost/Unit Total $ January 1 February Balance in Inventory Units AvgCost/Unit Total $

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