Answer:
Using weighted average, the cost of goods sold for the sale of 23 units on July 31 is $2,504.70, and the inventory balance at July 31 is $ 1,306.90.
Step-by-step explanation:
Since Intercontinental, Inc., uses a perpetual inventory system, and on July 1, purchased 10 units for $ 910 or $ 91 per unit; on July 3, purchased 15 units for $ 1,590 or $ 106 per unit; on July 14, it sold 20 units; on July 17, purchased 20 units for $ 2,300 or $ 115 per unit; on July 28, purchased 10 units for $ 1,190 or $ 119 per unit; and on July 31, sold 23 units, to determine the average costs and the inventory balance as of July 31, the following calculations must be performed:
(910 +1590 + 2300 + 1190) / (10 + 15 + 20 + 10) = X
5990/55 = X
108.90 = X
108.90 x 23 = 2504.7
(55 x 108.9) - (43 x 108.9) = X
5990 - 4683.10 = X
1306.90 = X
Using weighted average, the cost of goods sold for the sale of 23 units on July 31 is $ 2504.70, and the inventory balance at July 31 is $ 1,306.90.
