Brief Exercise 6-7 Calculate ending inventory and cost of goods sold using weighted-average cost (LO6-3) During...

Brief Exercise 6-7 Calculate ending inventory and cost of goods sold using weighted-average cost (LO6-3)

During the year, Wright Company sells 470 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year.

Date	Transaction	Number of Units		Unit Cost		Total Cost
Jan. 1	Beginning inventory		60	$	82	$	4,920
May. 5	Purchase		250		85		21,250
Nov. 3	Purchase		200		90		18,000
			510			$	44,170

Calculate ending inventory and cost of goods sold for the year, assuming the company uses weighted-average cost. (Round your average cost per unit to 4 decimal places.)

Solutions

Expert Solution

Answer:
Particulars	Units	x	Unit Cost	Total Cost
Beginning inventory	60	x	82	4920
Purchase - May .5	250	x	85	21250
Purchase - Nov. 3	200	x	90	18000
Total	510			44170

weighted average cost per unit = Total Cost / Total Units = $44,170 / 510 Units = $ 86.6078	$ 86.6078


Cost of goods Sold = 470 Units x $ 86.6078 = $ 40,706	$ 40,706
Ending Inventory in Units = 510 Units (-) 470 Units = 40 Units

Cost of Ending Inventory in Units = 40 Units x $ 86.6078	$ 3,464

ekkarill92 answered 10 months ago

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