Question

Monarch Company uses a weighted-average perpetual inventory system, and has the following purchases and sales: January 1 20 units were purchased at $10 per unit. January 12 12 units were sold. January 20 18 units were purchased at $11 per unit.

Answer 1

Answer: incomplete question: what is the value of the closing inventory?

Ending inventory is $278

Explanation:

Cost of goods sold = 12 units * $10 per unit = $120

Average cost =bal of purchases on Jan 1 plus purchases on Jan 20 / ending inventory qty

= [(8 * $10) + (18 *$11)] / 26 units = $10.69/unit

Ending inventory = (8 + 18) 26 units * $10.69/unit = $277.94

Appx = $278