MGMT 2101 Lecture Notes - Lecture 7: Accounts Receivable
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8 units sold periodic method-wait until the end of the month to figure things out. Under the perpetual method, every time a transaction happens, inventory is updated. Using the perpetual method, we would calculate cost of goods as follows: 3 units comes from june 1 at this point we would make an entry: Under thus method, every time you make a sale you have to recalculate the weighted avg cost of inventory. Balance left after june 8 sale cost of goods sold on june 8. 100 (11 units + 3 units) (/14 units) weighted avg cost is which is + . 285 cost of goods sold recorded on june 8th. 98. 93 weighted avg cost weighted avg cost per unit. 9 units left are by taking 14 left above less 5 sold on june 30th. Balance in ending inventory on july 2 (adding on to question) they buy: 594 cost of july 2nd purchase per unit.