Tama Inc. uses a perpetual inventory system and had thefollowing activity for a single...

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Accounting

Tama Inc. uses a perpetual inventory system and had thefollowing activity for a single inventory item:
   Units    Unit Cost Total Cost
       May 1,inventory                140      $2.50                               $350
       Purchases:
             May5                         200      3.50                                   700
             May10                       140      4.50                                   630
             May15                       160      5.50                                   880
       Sales:
             May11                       250
             May19                       150
Using the perpetual system, determine the ending inventory andcost of goods sold under weighted-average method (round unit costto nearest cent)

Answer & Explanation Solved by verified expert

4.2 Ratings (832 Votes)

	Puchases			Sales			Balance
Date	Units	Per unit	Total	Units	Per unit	Total	Units	Per unit	Total
1-May	140	2.5	350				140	2.5	350
Total							140	2.5	350

Opening							140	2.5	350
5-May	200	3.5	700				200	3.5	700
10-May	140	4.5	630				140	4.5	630
TotaL							480	3.5	1680	note 1

Opening							480	3.5	1680
11-May				250	3.5	875	-250	3.5	-875
15-May	160	5.5	880				160	5.5	880
TotaL							390	4.32	1685	note 2

Opening							390	4.32	1685
19-May				150	4.32	648.08	-150	4.32	(648.08)
Total						1523.077	240	4.32	1036.923


Note

1. Weighted average cost = Total cost/total units
	=	1680/480
	=	3.5
2. Weighted average cost = Total cost/total units
	=	1685/390
	=	4.32
Cost of goods sold is 1523.077
Closing inventory = 240 units at total cost of 1036.92

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In: AccountingTama Inc. uses a perpetual inventory system and had thefollowing activity for a single inventory...Tama Inc. uses a perpetual inventory system and had thefollowing activity for a single inventory item: Units Unit Cost Total Cost May 1,inventory 140 $2.50 $350 Purchases: May5 200 3.50 700 May10 140 4.50 630 May15 160 5.50 880 Sales: May11 250 May19 150Using the perpetual system, determine the ending inventory andcost of goods sold under weighted-average method (round unit costto nearest cent)