Question

You have the following information for Blue Spruce Corp. for the month ended October 31, 2022. Blue Spruce uses a periodic method for inventory. Date Description Units Unit Cost or Selling Price Oct. 1 Beginning inventory 50 $22Oct. 9 Purchase 125 24Oct. 11 Sale 90 45Oct. 17 Purchase 90 25Oct. 22 Sale 50 50Oct. 25 Purchase 60 27Oct. 29 Sale 100 50Calclate the wheighted average cost.

Answer 1

Answer:

Weighted Average Cost = $25,31

Explanation:

                                     Number of Units    Cost Per Unit    Total Cost  Av. Cost

Beginning Inventory             50                         $22              $1,100        $22

October 9                             125                         $24              $4,100       $23.43

October 11                             (90)                                            $1,991.43    $23.43          

October 17                             90                          $25            $4,241.42    $24.23

October 22                           (50)                                            $3,063.75  $24.23   October 25                            60                          $27             $4,683.75  $25.31

October 29                           (100)                                           $2,152        $25,31