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Inventory Costing Methods Anderson's Department Store has the following data for inventory, purchases, and sales of merchandise for December for one of the items the
Inventory Costing Methods
Anderson's Department Store has the following data for inventory, purchases, and sales of merchandise for December for one of the items the company sells:
Activity | Units | Purchase Price (per unit) | Sale Price (per unit) | |||
Beginning inventory | 10 | $6.00 | ||||
Purchase 1, Dec. 2 | 22 | 6.80 | ||||
Purchase 2, Dec. 5 | 26 | 7.50 | ||||
Sale 1, Dec. 7 | 19 | $12.00 | ||||
Sale 2, Dec. 10 | 25 | 12.00 | ||||
Purchase 3, Dec. 12 | 12 | 8.00 | ||||
Sale 3, Dec. 14 | 20 | 12.00 |
Anderson's uses a perpetual inventory system. All purchases and sales were for cash.
Required:
1. Compute cost of goods sold and the cost of ending inventory using the weighted average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest penny.)
Cost of goods sold | $ |
Cost of ending inventory | $ |
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