A company purchased 400 units for $50 each on January 31. It purchased 200 units for...

A company purchased 400 units for $50 each on January 31. It purchased 200 units for $25 each on Feb 28. It sold a total of 200 units for $60 each from March 1 through December 31. If the company uses the weighted - average inventory costing method, calculate the cost 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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Expert Solution

Solution:

Computation of closing inventory as per LIFO method

Date	Purchase			Sales			Closing balance
	unit	Price	total	unit	price	Total	unit	price	total
January. 31	400	50	20000
February. 28	200	25	10000
Till Dec 31				200	60	12000	400	50	20000

ekkarill92 answered 2 years ago

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