Shamrock Company uses a perpetual inventory system. Beginning inventory is 3,100 T-shirts at a cost $2.50 per shirt. During the year Shamrock had the following inventory transactions:

All purchases and sales are on account.

Calculate the cost of goods sold and ending inventory using weighted average. (Round the weighted average cost per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)

To calculate the cost of goods sold (COGS) and ending inventory using the weighted average method in a perpetual inventory system, follow these steps:

### Given Information:
- **Beginning Inventory:** 3,100 T-shirts at $2.50 per shirt.
- **Purchases and Sales:** You'll need to provide details about purchases and sales during the year for an accurate calculation. Since this information is missing, I'll assume typical steps you'd follow and then request the actual transaction details from you.

### Steps for Weighted Average Method:
1. **Determine the cost of beginning inventory:**  
   \[
   \text{Beginning Inventory Cost} = 3,100 \times 2.50 = \$7,750
   \]

2. **For each purchase:**
   - Update the total quantity and total cost of inventory.
   - Calculate the new weighted average cost per unit.

3. **For each sale:**
   - Multiply the weighted average cost per unit by the number of units sold to determine the cost of goods sold for that transaction.
   - Subtract the number of units sold from the total quantity to update inventory.

4. **Ending Inventory:**
   - After the final transaction, the total quantity left multiplied by the last calculated weighted average cost per unit gives the ending inventory.

### Example Walkthrough:
If Shamrock made the following transactions:
- **Purchase 1:** 5,000 T-shirts at $3.00 per shirt.
- **Sale 1:** 4,000 T-shirts sold.
- **Purchase 2:** 2,000 T-shirts at $3.50 per shirt.
- **Sale 2:** 3,000 T-shirts sold.

The calculations would proceed as follows (assuming you provide similar data):

#### Transaction 1: Purchase
- New Quantity = 3,100 + 5,000 = 8,100 T-shirts
- New Total Cost = \$7,750 + (5,000 × 3.00) = \$22,750
- New Weighted Average Cost per Unit = $\frac{\$22,750}{8,100}$ = \$2.81 (rounded to 2 decimals)

#### Transaction 2: Sale
- COGS for Sale 1 = 4,000 × \$2.81 = \$11,240
- Remaining Inventory = 8,100 − 4,000 = 4,100 T-shirts
- Remaining Inventory Cost = 4,100 × \$2.81 = \$11,510

Continue in this way for all transactions.

### Conclusion:
For precise COGS and ending inventory, please provide:
1. Specific dates and details of all purchases and sales.
2. If any other costs (like shipping) are included.

Once this information is given, I can complete the calculation.

---

Would you like to provide these details, or do you need further clarification?

Learn how to calculate the cost of goods sold (COGS) and ending inventory using the weighted average method in a perpetual inventory system. Begin with 3,100 T-shirts at $2.50 each, and follow detailed steps to handle purchases and sales throughout the year.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation