Question

Sharon Lee Company was formed on December 1, 2019. The following information is available from Lee’s inventory records for Product BAP. Units Unit Cost January 1, 2020 (beginning inventory) 1,440 $ 8 Purchases:    January 5, 2020 2,880 9    January 25, 2020 3,120 10    February 16, 2020 1,920 11    March 26, 2020 1,440 12 A physical inventory on March 31, 2020, shows 3,840 units on hand.

(c2) Compute the ending inventory at March 31, 2020, under Weighted-average inventory method. (Round answer to 0 decimal places, e.g. 2,760.) Weighted-Average Ending Inventory at March 31, 2020 $

Answer 1

Ending Inventory on March 31, 2020 = $38,054 or $38,059

Working

	Units	Cost per unit	value
Beginning Balance	1440	$                     8.00	$ 11,520
Purchases
	2880	$                     9.00	$ 25,920
	3120	$                   10.00	$ 31,200
	1920	$                   11.00	$ 21,120
	1440	$                   12.00	$ 17,280
Cost of goods available for sale	10800		$ 107,040

.

Average Cost of Inventory
Units	(A)	10800
Total Cost	(B)	$ 107,040
Average Cost	(C=B/A)	$ 9.91

.

Weighted Average method
Total Units Available for sale		10800
Units Sold		6960
Closing Stock in Units		3840
Valuation
Ending Inventory	3840	@	$               9.91	$            38,059