Question

Periodic Inventory by Three Methods

Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the next 12 months, and the inventory count at December 31 are summarized as follows:

Purchases Invoices
Model	Inventory, January 1		1st		2nd		3rd		Inventory Count, December 31
A10	__		4 at	$ 29	4 at	$ 32	4 at	$ 35	5
B15	8 at	$ 93	4 at	84	3 at	90	6 at	97	7
E60	3 at	69	3 at	59	15 at	62	9 at	64	5
G83	7 at	228	6 at	236	5 at	246	10 at	245	9
J34	12 at	81	10 at	83	16 at	90	16 at	91	13
M90	2 at	119	2 at	121	3 at	139	3 at	141	5
Q70	5 at	161	4 at	171	4 at	176	7 at	181	8

Required:

3. Determine the cost of the inventory on December 31 by the weighted average cost method.

Answer 1

	Total Units (JAN1 + Purchased)	Total Value of Goods	Rate	Closing Units	Closing Value
A10	12	384	32.0	5	160
B15	21	1932	92.0	7	644
E60	30	1890	63.0	5	315
G83	28	6692	239.0	9	2151
J34	54	4698	87.0	13	1131
M90	10	1320	132.0	5	660
Q70	20	3460	173.0	8	1384
	Cost of the inventory on December 31 by the weighted average cost method		6445

Calculation of rate, total units and value
	Jan-01	1st	2nd	3rd
	Units	rate	Value	Units	rate	Value	Units	rate	Value	Units	rate	Value	Total Units	Total Value	Rate
A10	0		0	4	29	116	4	32	128	4	35	140	12	384	32
B15	8	93	744	4	84	336	3	90	270	6	97	582	21	1932	92
E60	3	69	207	3	59	177	15	62	930	9	64	576	30	1890	63
G83	7	228	1596	6	236	1416	5	246	1230	10	245	2450	28	6692	239
J34	12	81	972	10	83	830	16	90	1440	16	91	1456	54	4698	87
M90	2	119	238	2	121	242	3	139	417	3	141	423	10	1320	132
Q70	5	161	805	4	171	684	4	176	704	7	181	1267	20	3460	173