Question

During the year, Wright Company sells 400 remote-control airplanes for $100 each. The company has the following inventory purchase transactions for the year. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 50 $ 78 $ 3,900 May. 5 Purchase 230 81 18,630 Nov. 3 Purchase 160 86 13,760 440 $ 36,290 Calculate ending inventory and cost of goods sold for the year, assuming the company uses weighted-average cost. (Round your average cost per unit to 4 decimal places.)

Answer 1

Answer:

cost of goods sold = $32,990.91

ending inventory = $3,299.09

Explanation:

date      particulars                  units           cost per unit         total cost

Jan. 1    Beginning inventory   50                     $78                $3,900

May 5   Purchase                    230                    $81                $18,630

Nov. 3   Purchase                    160                    $86               $13,760

Total                                          440                 $82.4773       $36,290

cost of goods sold = ($36,290 / 440) x 400 = $32,990.91

ending inventory = ($36,290 / 440) x 40 = $3,299.09