During 2021, a company sells 500 units of inventory for $88 each. The company has the...

During 2021, a company sells 500 units of inventory for $88 each. The company has the following inventory purchase transactions for 2021:

Date		Transaction	Number of Units		Unit Cost		Total Cost
Jan.	1	Beginning inventory		73	$	78		$	5,694
May	5	Purchase		262		79			20,698
Nov.	3	Purchase		184		81			14,904
				519				$	41,296

Calculate cost of goods sold and ending inventory for 2021 assuming the company uses the weighted-average cost method.

Cost of goods sold:?

ending inventory:?

Expert Solution


Calculation of Unit Cost

Unit cost (Weighted average )= Total Purchase / Total Units available
=41296/519
79.6


Cost of Goods sold = No. of units sold * Unit cost
=500 * 79.6
39,784

Ending Inventory = Cost of goods available for sale - Cost of goods sold
=41296 - 39784
1,512

ekkarill92 answered 2 years ago

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