Question

When the weighted average cost method is used in a perpetual inventory system, a weighted average unit cost for each item is computed each time a sale is made. at the end of the year. at the beginning of each month. each time a purchase is made. 2. Jacobs Company had inventory of 15 units at a cost of $12 each on June 1. On June 5, Jacobs purchased 10 units at $13 per unit. On June 12, it purchased 20 units at $14 per unit. On June 17, it sold 30 units. Using FIFO, what is the value of the inventory at June 17 after the sale? $140 $160 $210 $380 PreviousNext

Answer 1

Answer:

Ending inventory $210

Explanation:

Perpetual inventory system:

Cost of Goods Sold and ending inventory are calcualte after every sale.

Inventory available at the moment of sale:

Beginning inventory of 15 units at a cost of $12 = $180

June 5, Jacobs purchased 10 units at $13 per unit = $130

On June 12, it purchased 20 units at $14 per unit = $280

units for sale: 45 cost of goods available for sale 590

we sold 30 units. Units at ending Inventory: 45 - 30 = 15

We are asked for FIFO method:

first units are sold and newest are inventory so, ending invenotry will be compose of units fro mthe nearest purchase which is June 12th

15 units x $14 each = $ 210