COMMERCE 1AA3 Lecture 20: Class 20
Document Summary
Check out the illustrations of cost ow assumptions document. For the perpetual wac, you must calculate the cogs for each sale. Cost of ending inventory after sale: 8000 - 4000 = 4000 * . 50 = . 4/6 cost of inventory after last sale + purchases since last sale. Units available for sale = 4000 + 2000 + 6000 = 12000. Units of ending inventory after sale = 12000 - 3000 = 9000. Cost of ending inventory after sale = 9000 * . 83 = . 9/14 cost of inventory after last sale + purchases = 9000 * . 83 + 6000 * . Units available for sale = 9000 + 6000 = 15000. Units of inventory after sale - 15000 - 6000 = 9000. Cost of inventory after sale - 9000 * . 50 = . Cogs for the year (add up all the totals for cogs for each sale) Cost of inventory after last sale + purchases since last sale.