Question

30) Ralwins Company had the following balances and transactions during 2018, from January 1 to December 31: Beginning Merchandise Inventory 200 units at $83 March 10 Sold 100 units June 10 Purchased 600 units at $86 October 30 Sold 300 units What would be reported for ending Merchandise Inventory on the balance sheet at December 31, 2018 if the perpetual inventory system and the weighted-average inventory costing method

Answer 1

" Ending Merchandise Inventory on the balance sheet at December 31, 2018 = $34,228 "

Weighed Average Method Inventory Schedule

Date	Qty Purchased	Unit Cost	Total Cost	Qty Sold	Unit cost	Cost of goods sold	Ending Inv.Qty	Unit Cost	Total Inventory
Beginning							200	83	16,600
March 10				100	83	8,300	100	83	8,300
June 10	600	86	51,600				100	83	8,300
							600	86	51,600
October 30				300	85.57	25,671	400	85.57	34,228
TOTAL							400	85.57	34,228

October 30 Weighted Average Cost = (8,300 + 51,600)/ 700 = $85.57

Ending Merchandise Inventory on the balance sheet at December 31, 2018 = $34,228