So I am coming $5 off on my weighted average. I have recalculated it several times got to $1 off then $10 off....I am hoping someone can look at this and see what I did wrong....
Jan. 1 Beg. Inventory 600 @ $44 I calculate $26,400
Feb. 10 Purchased 100 @ $20 I calculate $ 2,000
March 13 Purchased 100 @ $20 I calculate $2000
Mar 15 sold 400 @ $75 I calculate $30,000
Aug. 21 purchased 160 @ $60 I calculate $9600
Sep. 5 purchased 280 @ $48 I calculate 13,440
Sep. 10 sold 200 @ $75 I calculate $15,000
My ending inventory balance is $34,060 and the book says it should be $34,055....
I am off $5 somewhere, everytime I change my calculations I come up with a different balance but never what the book states it should be...Please help
2007-10-05 10:00:53 · 2 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Does it matter if it is FIFO or LIFO? Maybe that is my problem?
2007-10-05 10:45:33 · update #1
No, it's nothing to do with FIFO or LIFO. You're told the cost formula is weighted average. WA is always calculated using cost price. When you sell anything, you should deduct the no. of units sold at the WA cost, not the selling price. I think that's where your error is.
2007-10-05 22:53:17 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
Is it first in, first out? Or first in last out?
2007-10-05 10:05:39 · answer #2 · answered by Anonymous · 0⤊ 2⤋