Weighted Average Cost Analysis Using Excel Completing this activity will help you learn to: 1. analyze the cost of Inventory Items based on the weighted-average method. 2. create a re-usable spreadsheet by using calculations with cell references. 3. create spreadsheets that Incorporate conditional logic to facilitate calculations. Case scenario: You are a newly hired accountant for Sushi Beeber, Inc., a retail company specializing in apparel for small pets. The company would like to expand its apparel line to Include sweaters for cats. Sushi Beeber has found several manufacturers that offer competitive prices to ensure cost of goods sold is low. Because the company receives merchandise from different manufacturers and the cat sweaters will be commoditized, the company needs to develop an internal accounting system to keep track of Inventory cost. You think that the weighted average cost method may help the company stay up-to-date with the Inventory cost as purchase cost changes over time. Your task is to create a spreadsheet that can calculate the Inventory cost based on purchases and sales for the month. Required: Download spreadsheet WeightedAverageCostAnalysisCaseData-284077.xisx You are to build a spreadsheet that can calculate the new Inventory cost and the weighted-average cost, when a new purchase or sale record is added to the table. HINT: STEP-BY-STEP WALKTHROUGH 1. To help you get started, the file already has a list of columns for you to fill out. Row 2 has the beginning Inventory. Starting with row 3, you need to fill in each field so that you can find the updated Inventory total cost and weighted-average cost. To accomplish this task, complete the following steps: a. Conditional logic: Because a new record can be either a "purchase" or a "sale", you need to handle these two situations differently; you need to apply conditional logic through If statements: 1. In E3, create an If statement that will be equal to 1 if B3 is a purchase and equal to -1 if B3 is a sale. Il. In F3, create an If statement that will be equal to 1 if B3 is a purchase and 0 otherwise. Ill. In G3, create an If statement that will be equal to 1 if B3 Is a sale and 0 otherwise. b. Find units on hand: In H3, create an equation that calculates the updated units on hand: if B3 is a purchase, updated units on hand =H2+C3; if B3 is a sale, updated units on hand =H2-C3. C. Find Inventory cost: 1. In 13, if B3 is a purchase, the cost of the purchase =C3*D3. Otherwise, 0. I1. In J3, if B3 Is a sale, the cost of the sale =C3*L2. Otherwise, 0. Hint: We use L2 as the unit cost because the amount in L2 is the starting weighted-average cost. Ill. In K3, the updated inventory cost =K2+13-13. d. Weighted Average Cost In L3 = Inventory Total Cost/Units on hand. e. Find the Inventory total cost and weighted average cost for the month, I.e., all of the records of data. Enter values for the next eight rows, Row 3 through 10, In the table below. Do not round intermediate calculations. Round your answers to the nearest cent. Date Purchase/Sale Inventory Weighted Total Cost Average Cost 1-Oct Purchase 1-Oct Sale 3-Oct Sale 4-Oct Purchase -Oct Sale 1-Oct Sale 7-Oct Sale 7-Oct Purchase 2. Explain how conditional logic is used in this spreadsheet and how it might be done differently. The Input in the box below will not be graded, but may be reviewed and considered by your instructor.Sign for Cost of Sign Cost of Sales (sale (purchase = Purchase = 1, Weighted Purchase Purchase +1, sale = - (purchase = purchase = Units on Cost of Inventory Average Date /Sale Units Unit Cost 1) 1, sale =0) 0) Hand Purchase Cost of Sales Total Cost Cost 140 $ 14,000.00 $ 100.00 1-Oct Purchase 80 $ 111.00 1-Oct Sale 40 3-Oct Sale 30 4-Oct Purchase 70 $ 115.00 4-Oct Sale 70 4-Oct Sale 60 7-Oct Sale 80 7-Oct Purchase 90 $ 116.00 Purchase 20 $ 116.00 8-Oct Sale 30 8-Oct Sale 40 9-Oct Sale 20 9-Oct Purchase 50 $ 116.00 9-Oct Sale 10 9-Oct Sale 20 10-Oct Purchase 50 $ 118.00 10-Oct Purchase 20 $ 118.00 11-Oct Sale 40 11-Oct Sale 30 14-Oct Purchase 40 $ 124.00 14-Oct Sale 10 15-Oct Sale 30 15-Oct Sale 10 16-Oct Purchase o $ 124.00 17-Oct Purchase 0 S 124.00 17-Oct Sale 10 18-Oct Purchase 50 $ 124.00 18-Oct Sale 30 21-Oct Sale 30 21-Oct Purchase 100 $ 22-Oct Sale 70 23-Oct Purchase 10 $ 122.00 24-Oct Purchase 100 $ 121.00 25-Oct Sale 30 25-Oct Sale 20 28-Oct Sale 70 28-Oct Purchase 30 $ 121.00 29-Oct Sale 120 30-Oct Purchase 50 $ 124.00 30-Oct Sale 60 31-Oct Purchase 80 $ 124.00 31-Oct Purchase 40 $ 126.00