Question

Of the 1,600 units sold during the period, 300 were from the beginning inventory; 500 from the first purchase; 600 from the second purchase; and 200 from the last purchase. Using the weighted-average costing method and rounding the average unit cost to the nearest whole cent, the value of the inventory on hand at the end of the period would be

Answer 1

Answer:

$2,650

Explanation:

the first part of the question is missing:

"The following data applies to a particular item of merchandise: On hand at start of period 300 $5.10 1st purchase 500 $5.20 2nd purchase 700 $5.30 3rd purchase 600 $5.50 Number of units available for sale 2,100"

beginning inventory 300 units at $5.10 = $1,530

1st purchase 500 units at $5.20 = $2,600

2nd purchase 700 units at $5.30 = $3,710

3rd purchase 600 units at $5.50 = $3,300

total number of units 2,100

total cost = $11,140

average cost per unit = $5.30

ending inventory = 500

value of ending inventory using average cost = 500 x $5.30 = $2,650