Question

company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 350 units. Ending inventory at January 31 totals 150 units. Units Unit Cost Beginning inventory on January 1 320 $ 3.00 Purchase on January 9 80 3.20 Purchase on January 25 100 3.34 Required: Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round per unit costs to 2 decimal places. Amounts to be deducted should be indicated with a minus sign.)

Answer 1

Answer:

Company A

The cost assigned to Ending Inventory under periodic inventory system and based on the weighted average method is:

= $465

Explanation:

a) Data and Calculations:

                                                        Units     Unit Cost  Total Costs

Beginning inventory on January 1   320        $ 3.00      $960 (320 * $3.00)

Purchase on January 9                      80           3.20         256 (80 * $3.20)

Purchase on January 25                  100           3.34          334 (100 * $3.34)

Total                                                  500         $3.10     $1,550 ($1,550/500)

Units sold                                        -350          $3.10    -$1,085 (350 * $3.10)

Ending inventory                             150           $3.10       $465 (130 * $3.10)