Assume Hadley Co has the following purchases of inventory during the first month of operations Number of Units Cost per unit First Purchase 310 3 Second Purchase 220 4.9 Assuming Hadley sells 290 units at $11 each, what is the value of her ending inventory if she uses weighted average

Ending inventory cost = $948

Explanation:

Giving the following information:

First Purchase = 310 units for $3 each

Second Purchase = 220 units for $4.9 each

Units sold = 290

First, we need to calculate the weighted average cost:

Weighted average cost = (3 + 4.9) / 2 = $3.95

Ending inventory (units) = 240 units

Now, ending inventory cost:

Ending inventory cost = 240*3.95 = $948