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Costco Wholesale Corporation uses the weighted-average method for inventory valuation. The following information is available for the year ending December 31, 2023: Beginning inventory: 2,000
Costco Wholesale Corporation uses the weighted-average method for inventory valuation. The following information is available for the year ending December 31, 2023:
- Beginning inventory: 2,000 units @ $10 each
- Purchases: 6,000 units @ $12 each
- Sales: 7,000 units @ $20 each
Required:
- Calculate the cost of goods sold (COGS).
- Determine the ending inventory value.
- Prepare the journal entries for inventory purchases and sales.
- Discuss the impact of the weighted-average method on financial statements.
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Cost Accounting
Authors: William K. Carter
14th edition
978-0759338098
