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Hopewell Electronics maintains its LED television inventory using the perpetual method. The inventory records for April...

Hopewell Electronics maintains its LED television inventory using the perpetual method. The inventory records for April follow: Beginning inventory 20 units @ $525 each April 12 purchase 30 units @ $550 each April 20 sale 40 units @ $830 each April 25 purchase 15 units @ $575 each Using the weighted-average cost method, how much is the April 30 ending inventory on the Hopewell Electronics' Balance Sheet? Select one: A. $21,600 B. $13,750 C. $14,025 D. $14,175

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Expert Solution

At each purchase and sale weighted average cost of inventory is determined under weighted average cost method. Below is the inventory movement schedule:

Date Particulars Units Per unit cost Total
Apr-01 Opening balance              20           525        10,500
Apr-12 Purchase              30           550        16,500
Balance after purchase              50           540        27,000
Per unit cost= Total inventory value/ Total units 27000/50 =540
Apr-20 Sale 40           540        21,600
Balance after sale              10           540           5,400
Apr-25 Purchase 15 575 8625
Balance after purchase              25 561        14,025
Per unit cost= Total inventory value/ Total units 14025/25 =561

Balance in inventory is $14,025.

Correct option is C. $14,025

ekkarill92 answered 9 months ago
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