Question - Alpha Company uses the periodic inventory system for purchase & sales of merchandise. The value of inventory is based on periodic system. On January 1, 2016, beginning inventory consisted of 400 units of widgets costing $10 each. Alpha prepares monthly income statements. The following events occurred during the month of Jan.:
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Date
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Activity
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a.
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Jan. 3
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Purchased on account 350 widgets for $11 each.
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b.
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Jan. 5
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Sold on account 500 widgets for $30 each.
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c.
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Jan. 10
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Purchased on account 650 widgets for $12 each.
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d.
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Jan. 12
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Returned 50 widgets received from Jan. 10 purchase.
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e.
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Jan. 13
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Paid for the purchases made on Jan. 3.
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f.
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Jan. 21
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Sold on account 550 widgets for $30 each.
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g.
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Jan. 25
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Received payment for the sale made on Jan. 5.
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h.
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Jan. 26
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Paid for the purchases made on Jan. 10.
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i.
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Jan. 31
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Received payment for the sale made on Jan. 21.
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Using the Weighted Average method, determine the dollar values following for the month of January: (Enter only whole dollar values.)
1. Ending Inventory
2. Cost of Goods Available for Sale
3. Cost of Goods Sold