4. How much are the ending inventory and cost of sales underthe Weighted Average cost formula? (The average iscalculated as each additional purchase is made, i.e., 'movingaverage'.)Ending inventoryCost of salesa. 116,832b. 116,382207,918207,918c. 118,685d. 116,495205,615207,805 Cost formulaInformation on Entity A's inventory of Product A is as follows:Units3,000Unit CostTotal CostBalance at Jan.1P19.55P 58,650Purchases:Jan. 6Jan. 2610,20021.50219,3002,25020.6046,350Sales:Jan. 7Jan. 312,7007,200

Weighted Average Method:-It is the cost per unit obtained by dividing the total cost of inventory by…

Information on Entity A's inventory of Product A is as follows: Units 3,000 Unit Cost Total Cost P 58,650 Balance at Jan. 1 P19.55 Purchases: Jan. 6 Jan. 26 10,200 2,250 21.50 219,300 20.60 46,350 Sales: Jan. 7 Jan. 31 2,700 7,200

Information on Entity A's inventory of Product A is as follows: Units 3,000 Unit Cost Total Cost P 58,650 Balance at Jan. 1 P19.55 Purchases: Jan. 6 Jan. 26 10,200 2,250 21.50 219,300 20.60 46,350 Sales: Jan. 7 Jan. 31 2,700 7,200

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter4: Operating Activities: Sales And Cash Receipts

Section: Chapter Questions

Problem 1.3C

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Question

4. How much are the ending inventory and cost of sales under
the Weighted Average cost formula? (The average is
calculated as each additional purchase is made, i.e., 'moving
average'.)
Ending inventory
Cost of sales
a. 116,832
b. 116,382
207,918
207,918
c. 118,685
d. 116,495
205,615
207,805

Cost formula
Information on Entity A's inventory of Product A is as follows:
Units
3,000
Unit Cost
Total Cost
Balance at Jan.1
P19.55
P 58,650
Purchases:
Jan. 6
Jan. 26
10,200
21.50
219,300
2,250
20.60
46,350
Sales:
Jan. 7
Jan. 31
2,700
7,200

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