Question

Given the following:

	Number purchased	Cost per unit			Total
January 1 inventory	40	$	4		$	160
April 1	60		7			420
June 1	50		8			400
November 1	55		9			495
	205				$	1,475

a. Calculate the cost of ending inventory using the weighted-average method (ending inventory shows 61 units). (Round the "average unit cost" and final answer to the nearest cent.)

Cost of ending inventory            $   

b. Calculate the cost of goods sold using the weighted-average method. (Round your intermediate calculations and final answer to the nearest cent.)

Cost of goods sold            $

Answer 1

	Units	Cost per unit	value
Beginning Balance	40	$               4.00	$               160.00
Purchases
1-Apr	60	$               7.00	$               420.00
1-Jun	50	$               8.00	$               400.00
1-Nov	55	$               9.00	$               495.00
	205		$         1,475.000

Average Cost of Inventory
Units	(A)	205
Total Cost	(B)	$ 1,475.00
Average Cost	(C=B/A)	$   7.20

Weighted Average method
Total Units Available for sale		205
Units Sold		144
Closing Stock in Units		61
Valuation
Ending Inventory	61	@	$ 7.20	$         439.20
Value Of Ending Inventory				$         439.20
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$     1,035.80

Requirement 1

Cost of Ending Inventory =$439.20

Requirement 2

Cost of Goods sold =$1035.80