Cost of sales = 28,500* × $13.4511 + $865 = $384,221 *Including shrinkage of 500 units Assignment 8-25 () a) Weighted average (periodic inventory system): Goods available for sale: Units Unit Cost Amount 1. Inventory 30 $19.00 $ 570 2. Purchase 45 20.00 900 3. Purchase 50 20.80 1,040 4. Purchase 50 21.60 1,080 Goods available for sale 175 $3,590  $3,590 175 = $20.51 per unit Goods available for sale 175 $20.51 $3,590 Ending inventory 75 20.51 1,538 Cost of goods sold (includes rounding error) 100 $2,052 b) Moving average (perpetual inventory system): Moving Units Average Amount 1. Inventory 30 $19.00 $ 570 2. Purchase 45 20.00 900 Balance 75 19.60 1,470 3. (50) ( 980) Balance 25 19.60 490 4. Purchase 50 20.80 1,040 Balance 75 20.40 1,530 5. (50) (1,020) Balance 25 20.40 510 6. Purchase 50 21.60 1,080 Balance 75 21.20 $1,590 Goods available for sale 175 $3,590 Ending inventory 75 1,590 Cost of goods sold 100 $2,000* *$980 + $1,020 = $2,000
Cost of sales = 28,500* × $13.4511 + $865 = $384,221 *Including shrinkage of 500 units Assignment 8-25 () a) Weighted average (periodic inventory system): Goods available for sale: Units Unit Cost Amount 1. Inventory 30 $19.00 $ 570 2. Purchase 45 20.00 900 3. Purchase 50 20.80 1,040 4. Purchase 50 21.60 1,080 Goods available for sale 175 $3,590 $3,590  175 = $20.51 per unit Goods available for sale 175 $20.51 $3,590 Ending inventory 75 20.51 1,538 Cost of goods sold (includes rounding error) 100 $2,052 b) Moving average (perpetual inventory system): Moving Units Average Amount 1. Inventory 30 $19.00 $ 570 2. Purchase 45 20.00 900 Balance 75 19.60 1,470 3. (50) ( 980) Balance 25 19.60 490 4. Purchase 50 20.80 1,040 Balance 75 20.40 1,530 5. (50) (1,020) Balance 25 20.40 510 6. Purchase 50 21.60 1,080 Balance 75 21.20 $1,590 Goods available for sale 175 $3,590 Ending inventory 75 1,590 Cost of goods sold 100 $2,000* *$980 + $1,020 = $2,000
FA2_Ch8_text_solutions.docx