Question
In: Accounting
A company uses the periodic inventory system and had the following activity during the current monthly...
A company uses the periodic inventory system and had
the following activity during the current monthly period.
| November 1: | Beginning inventory | 116 Units @ $10 |
| November 5: | Purchased | 116 Units @ $26 |
| November 8: | Purchased | 66 Units @ $25 |
| November 16: | Sold | 190 Units @ $125 |
| November 19: | Purchased | 95 Units @ $20 |
Using the weighted-average inventory method, the company's ending
inventory would be:
a. $1,160
b. $3,991
c. $3,550
d. $4,710
e. $3,060
Solutions
Expert Solution
- Correct Answer = Option ‘B’ $ 3,991
- Working
|
Average Method |
Cost of Goods available for sale |
||
|
Units |
Cost/unit |
COG for sale |
|
|
Beginning Inventory |
116 |
$ 10.00 |
$ 1,160.00 |
|
Purchases: |
|||
|
05-Nov |
116 |
$ 26.00 |
$ 3,016.00 |
|
08-Nov |
66 |
$ 25.00 |
$ 1,650.00 |
|
19-Nov |
95 |
$ 20.00 |
$ 1,900.00 |
|
TOTAL |
393 |
$ 19.659 or $ 19.66 |
$ 7,726.00 |
Ending Inventory = (393 units – 190
units) x $ 19.66
= $ 3991
ekkarill92 answered 1 year agoRelated Solutions
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