Question

A company uses the periodic inventory system and had the following activity during the current monthly period.

November 1: Beginning inventory 107 Units @ $10

November 5: Purchased 107 Units @ $26

November 8: Purchased 57 Units @ $25

November 16: Sold 154 Units @ $80

November 19: Purchased 50 Units @ $20

Using the weighted-average inventory method, the company's ending inventory would be:

Answer 1

	Units	Cost per unit	value
Beginning Inventory	107	$            10.00	$       1,070.00
Purchases
05-Nov	107	$            26.00	$       2,782.00
08-Nov	57	$            25.00	$       1,425.00
19-Nov	50	$            20.00	$       1,000.00
	321		$       6,277.00

Weighted Average Cost
Units	(A)	321
Total Cost	(B)	$      6,277.00
Average Cost	(C=B/A)	$            19.55

Weighted Average
Total Units Available for sale		321
Units Sold		154
Ending Inventory Units		167
Valuation
Ending Inventory	167	@	$ 19.55	$        3,264.85
Value Of Ending Inventory				$        3,265.85
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$        3,012.15

Value Of Ending Inventory= $3265.85    or $3266

Round your answer as appropriate

Alternate solution

Weighted Average Cost
Units	(A)	321
Total Cost	(B)	$      6,277.00
Average Cost	(C=B/A)	$     19.55452

Weighted Average
Total Units Available for sale		321
Units Sold		154
Ending Inventory Units		167
Valuation
Ending Inventory	167	@	$      19.55452	$        3,265.60
Value Of Ending Inventory				$        3,265.60
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$        3,011.40

Value Of Ending Inventory= $3265.60    or $3266

Round your answer as appropriate