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3 years ago

The classified Balance Sheet will subsection the assets section as follows:

Business

1 answer:

dimaraw [331]3 years ago

6 0

Answer:

1. a current assets and Property,Plant and Equipment

2. $1,684.37

Explanation:

1. Classified balance sheet is classified into current assets and Property, Plant and Equipment (long term liabilities) and the current assets are classified on the basis of liquidity.

2. Beginning inventory 10 units

First purchase 25 units

Second purchase 30 units

Third purchase 15 units

Units available for sale 80 units

Ending inventory (in units) = 25 units

Units sold = Units available for sale - Ending inventory (in units)

Units sold = 80-25

Units sold = 55 units

Beginning inventory 10 units*$60 $600

First purchase 25 units*$65 $1,625

Second purchase 30 units*$68 $2,040

Third purchase 15 units*$75 $1,125

Cost of goods available for sale $5,390

Weighted average cost per unit = Cost of goods available for sale / Units available for sale

Weighted average cost per unit = 5,390 / 80

Weighted average cost per unit = $67.375

Cost of goods sold = Units sold * Weighted average cost per unit

Cost of goods sold = 55 units * $67.375

Cost of goods sold = $3,705.625

Cost of goods sold = $3,705.63

Ending inventory = Cost of goods available for sale - Cost of goods sold

Ending inventory = $5,390 - $3,705.63

Ending inventory = $1,684.37

Thus, the amount of the inventory at the end of the year using the average cost method is $1,684.37

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