Question Details

Hoyt Company's inventory records show the following data 


1
Hoyt Company's inventory records show the following data for the month of September:
		Units	Unit Cost
Inventory, September 1	100	$3.00
Purchases:	September 8	450	3.50
	September 18	300	3.70

	A physical inventory on September 30 shows 250 units on hand. Calculate the value of the ending inventory and cost of goods sold if the company uses weighted average inventory costing and a periodic inventory system. Round cost per unit to 2 decimal places and ending inventory and cost of goods sold to the nearest dollar.


Solution 1	(4 min.)
Weighted average cost per unit:
	Cost of goods available for sale = $2,985
	Units available for sale  850
	$2,985 ÷ 850 = $3.51(rounded)
Ending inventory:	250 × $3.51 = $878
Cost of goods sold:	600 × $3.51 = $2,106

2
The following accounts are included in the ledger of Dean Company:

Advertising expense
Freight-in
Inventory
Purchases
Purchase returns and allowances
Sales
Sales returns and allowances

Which of the accounts would be included in calculating cost of goods sold?




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