Question

A company purchased 300 units for $60 each on January 31. It purchased 150 units for $25 each on February 28. It sold a total of 250 units for $70 each from March 1 through December 31. If the company uses the weighted-average inventory costing method, calculate the amount of ending inventory on December 31. (Assume that the company uses a perpetual inventory system. Round any intermediate calculations two decimal places, and your final answer to the nearest dollar.)

Answer 1

Answer:

$9,667

Explanation:

January 31 Purchases = 300 × $60 = $18,000

February 28 Purchases = 150 × $25 = $3,750

Total cost of purchases = $1,800 + $3,750 = $21,750

Weighted average cost = $5,550 ÷ (300 + 150) = $48.33 per unit

Units of ending inventory = Total units purchased - Total units sold = (300 + 150) - 250 = 200

Amount of ending inventory on December 31 = 200 × $48.33 = $9,667.

Answer 2

Answer:

Weighted-average inventory costing method Ending Inventory = $ 9666.67= $ 9667

Explanation:

Date           Particulars       Units   Unit Cost        Total Cost

January 31  Purchases          300             $ 60        $ 18,000

February 28   Purchases       150             $ 25          $3750

Total                                       450                               $ 21,750

Weighted-average inventory costing method=  Total Cost/ Total Units=

                                    $ 21,750/450= $48.33 purchase price per unit

Sales              250 units       at     $ 70    =      $ 17500

Ending Units =  Purchases-Sales = 450-250= 200

Weighted-average inventory costing method Ending Inventory = $ 9666.67

200 units at 448.33=  $ 9666.67= $ 9667