Question
The Wright Company recorded the following inventory information during the month of October: UNITS UNIT COST TOTAL COST UNITS ON HAND Balance on October 1
The Wright Company recorded the following inventory information during the month of October:
UNITS
UNIT COST
TOTAL COST
UNITS ON HAND
Balance on October 1
2,000
$1.00
$2,000
2,000
Purchased on October 8
1,200
$3.00
$3,600
3,200
Sold on October 20
1,500
1,700
Purchased on October 22
2,000
$4.00
$8,000
3,700
Sold on October 28
2,200
1,500
Purchase on October 29
1,000
$5.00
$5,000
2,500
Part B: Using the partially computed tables on the next three pages, compute the cost of goods sold and the cost of the 2,500 units in ending inventory under each of the assumptions given above.
AVERAGE COSTING Perpetual
(round cost per unit to four decimal places and total costs to two decimal places)
Date
Purchases
Sales
Inventory on Hand
Units
Cost
Total
Units
Cost
Total
Units
Cost
Total
10/1
2,000
$1.00
$2,000
10/8
Purchased 1,200 units
1,200
$3.00
$3,600
3,200
$1.75
$5,600
10/20
Sold 1,500 units
1,500
$1.75
$2,625
1,700
$1.75
$2,975
10/22
Purchased 2,000 units
10/28
Sold 2,200 units
10/29
Purchased 1,000 units
TOTALS
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