Events Assets Cash Acct Rec Inventory Equipment 1.Acquired $550,000 by signing a note payable with a local bank $ 550,000 2. Sold 25,000 shares of $22 Common Stock for $1,500,000 $ 1,500,000 3. Purchased Equipment $ (300,000) $ 300,000 4. Purchased Inventory on Account - 25.000 Units at $1.15 per unit $ 28,750 5a. Sold 15,000 units at $3.50 on Account 52,500 5b. COGS for Sales on Account $(17.250) 6. Collect $70.000 on Account $ 70,000 $ (70,000) 7. Paid $17.250 of Accounts Payable $17.250) 8. Purchased Inventory on Account - 170,000 Units at $1.50 per unit $ 255,000 9a. Sold 175,000 units of $3,50 on Account $ 612,500 19. COGS for Sales on Account -259000 10. Collect $472,500 on Account $ 472 500$ (472,500) 11. Paid $118,600 of Accounts Payable 118,600) 12. Purchased Inventory on Account 275,000 Units at $1,35 per unit $ 371,250 130. Sold 200,000 units at $3,50 on Account $ 700,000 135. COGS for Sales on Account $ 270,750) 14. Coloci 3735,000 on Account $ 735,000$ 735,000) IS. Paid $294,150 of Accounts Payablex $ 294,150) 16. Purchased Inventory on Account 300,000 Units al 11.15 per unit $ 345,000 12. Record Sales & Marketing Expenses of $30,000 $(30,000 18. Record Operating Expenses of $75,708 $ (75,708) 19. Record Wape Expenses of $40,000 20. Record Product Line Research & Development Expenses ol $150,000 5 (150.000) 21. Record Advertising Expenses of $87.500 $_187.500) 22. Mado the yearly required payment on the noto payable. The note cames a 7% interest rate and requires payments of $50,000 plus interest $ (88.500) each December 31. 23. Record Yr I Doproclation on Equipment with Salvago Value of $38,000 & Useful We of 7 Yes 24. Declared a $10.000 cash dividend torstockholders Horizontal hal Sheetank Horizontal Bal Sheet for REVIEW westory Trading Budget Template income Statement once Sheel 1 10 29 11 Solution Schedule Showing Cost of Goods Sold Calculation Using Weighted Average Cost Method Item Goods Available for No. Ending Inventory Cost of Goods Sold Sale (Purchases) Price/ Price/ Price/ Units Total Unit Total Units Total Unit Unit Unit Begning 4. 25,000 1.15 28,750 25,000 1.15 28,750 5a. 15,000 1.15 17,250 10,000 1.15 11,500 8. 170,000 1.50 255,000 180,000 1.48 266,500 9a. 175,000 1.48 259,000 5,000 1.48 7,500 12. 275,000 1.35 371,250 280,000 1.35 378,750 13a. 200,000 1.35 270,000 80,000 1.35 108,750 16. 300,000 1.15 345,000 380,000 1.19 453,750 Total 390,000 546,250 So, the estimated Cost of Goods Sold using Weighted Average Cost Method is 390,000 units for $546,250 Flexible Budget Master Budget at Actual Units Sold in Year 1 Actual Units Sold +25,000 Actual Units Sold + 50,000 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Sales & Marketing Operating Costs Wages Research & Development Expense Advertising Expense Depreciation Exp Interest Expense Net Income Events Assets Cash Acct Rec Inventory Equipment 1.Acquired $550,000 by signing a note payable with a local bank $ 550,000 2. Sold 25,000 shares of $22 Common Stock for $1,500,000 $ 1,500,000 3. Purchased Equipment $ (300,000) $ 300,000 4. Purchased Inventory on Account - 25.000 Units at $1.15 per unit $ 28,750 5a. Sold 15,000 units at $3.50 on Account 52,500 5b. COGS for Sales on Account $(17.250) 6. Collect $70.000 on Account $ 70,000 $ (70,000) 7. Paid $17.250 of Accounts Payable $17.250) 8. Purchased Inventory on Account - 170,000 Units at $1.50 per unit $ 255,000 9a. Sold 175,000 units of $3,50 on Account $ 612,500 19. COGS for Sales on Account -259000 10. Collect $472,500 on Account $ 472 500$ (472,500) 11. Paid $118,600 of Accounts Payable 118,600) 12. Purchased Inventory on Account 275,000 Units at $1,35 per unit $ 371,250 130. Sold 200,000 units at $3,50 on Account $ 700,000 135. COGS for Sales on Account $ 270,750) 14. Coloci 3735,000 on Account $ 735,000$ 735,000) IS. Paid $294,150 of Accounts Payablex $ 294,150) 16. Purchased Inventory on Account 300,000 Units al 11.15 per unit $ 345,000 12. Record Sales & Marketing Expenses of $30,000 $(30,000 18. Record Operating Expenses of $75,708 $ (75,708) 19. Record Wape Expenses of $40,000 20. Record Product Line Research & Development Expenses ol $150,000 5 (150.000) 21. Record Advertising Expenses of $87.500 $_187.500) 22. Mado the yearly required payment on the noto payable. The note cames a 7% interest rate and requires payments of $50,000 plus interest $ (88.500) each December 31. 23. Record Yr I Doproclation on Equipment with Salvago Value of $38,000 & Useful We of 7 Yes 24. Declared a $10.000 cash dividend torstockholders Horizontal hal Sheetank Horizontal Bal Sheet for REVIEW westory Trading Budget Template income Statement once Sheel 1 10 29 11 Solution Schedule Showing Cost of Goods Sold Calculation Using Weighted Average Cost Method Item Goods Available for No. Ending Inventory Cost of Goods Sold Sale (Purchases) Price/ Price/ Price/ Units Total Unit Total Units Total Unit Unit Unit Begning 4. 25,000 1.15 28,750 25,000 1.15 28,750 5a. 15,000 1.15 17,250 10,000 1.15 11,500 8. 170,000 1.50 255,000 180,000 1.48 266,500 9a. 175,000 1.48 259,000 5,000 1.48 7,500 12. 275,000 1.35 371,250 280,000 1.35 378,750 13a. 200,000 1.35 270,000 80,000 1.35 108,750 16. 300,000 1.15 345,000 380,000 1.19 453,750 Total 390,000 546,250 So, the estimated Cost of Goods Sold using Weighted Average Cost Method is 390,000 units for $546,250 Flexible Budget Master Budget at Actual Units Sold in Year 1 Actual Units Sold +25,000 Actual Units Sold + 50,000 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Sales & Marketing Operating Costs Wages Research & Development Expense Advertising Expense Depreciation Exp Interest Expense Net Income