Question

Assume Hadley Co has the following purchases of inventory during the first month of operations Number of Units Cost per unit First Purchase 310 3 Second Purchase 220 4.9 Assuming Hadley sells 290 units at $11 each, what is the value of her ending inventory if she uses weighted average

Answer 1

Answer:

Ending inventory cost= $948

Explanation:

Giving the following information:

First Purchase=  310 units for  $3 each

Second Purchase= 220 units for $4.9 each

Units sold= 290

First, we need to calculate the weighted average cost:

Weighted average cost= (3 + 4.9)/2= $3.95

Ending inventory (units)= 240 units

Now, ending inventory cost:

Ending inventory cost= 240*3.95= $948