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SOLUTIONS:

5. B 70 + 6 = 76

8. C Solution:

Date Transaction Units

Feb. 1 Beginning inventory 100
7 Purchase 300
12 Sale (320)
21 Purchase 200
Ending inventory (in units) 280

Units Unit cost Total cost

From Feb. 21 purchase 200 ₱21 ₱4,200
From Feb. 7 purchase (280 - 200) 80 18 1,440
Ending inventory (at cost) ₱5,640

9. A Solution:

Date Transaction Units Unit cost Total cost

Feb. 1 Beginning inventory 100 ₱15 ₱1,500
7 Purchase 300 18 5,400
21 Purchase 200 21 4,200
Total goods available for sale 600 ₱11,100

Formula:
Weighted Total goods available for sale (TGAS) in pesos
=
ave. cost Total goods available for sale (TGAS) in units

Weighted average unit cost = ₱11,100 ÷ 600 = ₱18.50

Ending inventory (in units) - see computation above 280

Weighted average unit cost ₱18.50
Ending inventory (at cost) ₱5,180

10. C Solution:

Date Transaction Units Unit cost Total cost

Feb. 1 Beginning inventory 100 ₱15.00 ₱1,500.00
7 Purchase 300 18.00 5,400.00
400 17.25 (a) 6,900.00
12 Sale (320) (5,520.00)
21 Purchase 200 21.00 4,200.00
Ending inventory 280 ₱5,580.00
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(a) Moving ave. cost = TGAS at cost ÷ TGAS in units

= (₱6,900 ÷ 400) = ₱17.25

Cost of sales = 320 units sold x ₱11.50 moving ave. cost = ₱5,520