If Daves Doors uses the weighted-average costing system, a weighted average cost per unit is calculated using the available for sale amounts.

Calculate the weighted average cost per unit for Daves Doors inventory available for sale. (round to the nearest cents 2 decimal places)

(2) Total Costs of available for sale (1) Number of units = (3) Weighted average cost per unit

________________ _______________ = ______________________

Assume Daves Doors sold 45 doors during September. Calculate the expense (COGS) relating to these doors using the weighted-average cost per door calculated above.

45 doors x _________ (cost per unit (3) above = ______________

Write the journal entry to record Daves expense (COGS)

Assume Daves sold these doors to customers for $480 each. Write the journal entry to record Daves revenue. Hint: You will have to calculate the total revenue as the price times number of doors sold.

What is Daves Gross Margin for the period using the weighted average costing method? Remember Gross Margin = Sales - COGS

How many units will Daves have in ending inventory?

Use the weighted average cost per unit to calculate the value of Daves ending inventory

# of units in inventory times cost per unit (3) above = ending inventory

_____________ X _____________ = _______________

Add COGS and ending Inventory together. __________________ It should equal the total costs of inventory available for sale.

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