A company purchased 300 units for $60 each on January 31. It purchased 150 units for $25 each on February 28. It sold a total of 250 units for $70 each from March 1 through December 31. If the company uses the weighted-average inventory costing method, calculate the amount of ending inventory on December 31. (Assume that the company uses a perpetual inventory system. Round any intermediate calculations two decimal places, and your final answer to the nearest dollar.)

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Business

Quincy Pratt

20 July, 23:40

A company purchased 300 units for $60 each on January 31. It purchased 150 units for $25 each on February 28. It sold a total of 250 units for $70 each from March 1 through December 31. If the company uses the weighted-average inventory costing method, calculate the amount of ending inventory on December 31. (Assume that the company uses a perpetual inventory system. Round any intermediate calculations two decimal places, and your final answer to the nearest dollar.)

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Callie Duke · Answer 1

Weighted-average inventory costing method Ending Inventory = $ 9666.67 = $ 9667

Explanation:

Date Particulars Units Unit Cost Total Cost

January 31 Purchases 300 $ 60 $ 18,000

February 28 Purchases 150 $ 25 $3750

Total 450 $ 21,750

Weighted-average inventory costing method = Total Cost / Total Units=

$ 21,750/450 = $48.33 purchase price per unit

Sales 250 units at $ 70 = $ 17500

Ending Units = Purchases-Sales = 450-250 = 200

Weighted-average inventory costing method Ending Inventory = $ 9666.67

200 units at 448.33 = $ 9666.67 = $ 9667