Answer:
<u> $272</u>
Explanation:
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.
<u>Weighted-average perpetual inventory system, divides the cost of goods available for sale by the number of units available for sale, which yields the weighted-average cost per unit. </u>
<u>We then use this weighted-average figure to assign a cost to both ending inventory and the cost of goods sold.</u>
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Therefore Goods Available for Sale = 20 units + 18 units = 38 units
Cost of Goods Available for Sale = ($10 x 20 units) + ($11 x 18 units) = $200 + $198 = $398
<u>weighted-average cost per unit = $398/ 38 units = $10.47 per unit</u>
<u>Therefore the value of ending inventory = (20 -12 +18) x $10.47 = $272</u>