Calculate cost of goods sold and ending inventory: perpetual weighted average cost. (LO 3, 4)

Cutting Edge Enterprises Inc. sells flat-screen televisions. The company began the last quarter of the year on October 1, 2009, with 750 units of inventory on hand. These units cost \(\$ 1,000\) each. The following transactions related to the company's merchandise inventory occurred during the last quarter of 2009.

All unit costs include the purchase price and freight charges paid by Cutting Edge Enterprises. Assume Cutting Edge uses a perpetual inventory system and the weighted average cost flow method.

a. Calculate the cost of goods sold that will appear on Cutting Edge Enterprises' income statement for the quarter ending December 31, 2009.

b. Determine the cost of inventory that will appear on Cutting Edge Enterprises' balance sheet at the end of December.

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October 15 October 29 November 15 December 28 December 30 Sold 450 units for $3,000 each Purchased 500 units for $1,800 each Sold 450 units for $4,000 each Purchased 500 units for $2,350) each Sold 800 units for $5,000 each