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Fipure 6.3: Cost of Goods sold using FIFO The entry to record the sale would be: 6. Inventor Cout row Aisampbons =219 The Weighted Average Cost Flow Assumption A weighted average cout few is astumed when eoods putchased on diffetent dates are mined wh th each othef. The welehted average cost assumption heopular in practice because it is eaw to calculate. It is also suitable when imventory is held in common sorage facilities - for example. when several crode of shipments are stored in one large holding tank. To calcutate a weighted average, the total cost of ali porchases of a particutar inventory type is divided by the number of units purehred To calculate the weifhed avenee cost in our example, the purchave prices for all five units are totaled ($1+$2+$3+$4+55=$15) and divided by the total number of unis purchased (5). The weighted average cost for eoch unit is $3(515/5). The wehgted average cost of goods iolid wovid be 512(4 units 853). Sales sull equal 540 rewiting in a gross proht under welghted ancrage of $28(540512). The cost of the one remaining unit in ending inventory is $3. The general ledper T-accounts for Merchandise inventory and Cest of Goods Sold are: Gunche 63 sinx Anary hrowa and sale AeMty Valuire fndes imberey Neriedichention is Mothed \begin{tabular}{|c|c|c|c|c|} \hline Duce & & Lots & teag Cest \\ \hline Lan & & & 2,000 & \\ \hline Hon & Sule n & & 1,700 & 500 \\ \hline Gin: & hrithave 1 & & 1,000 & 200 \\ \hline 104 an & Furthase? & & 500 & 100 \\ \hline 1Glan & Sales & & 2,000 & 600 \\ \hline & Avoluie i & & 1000 & 20 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline Date & Trumathen Drieriplen & Orth & Gedt \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline & Tremartien Cenciption & Dent & Condn \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular}