Question

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 430 units. Ending inventory at January 31 totals 170 units. Units Unit Cost Beginning inventory on January 1 390 $ 3.80 Purchase on January 9 90 4.00 Purchase on January 25 120 4.10 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per unit costs to 2 decimal places.)

Answer 1

Answer:

cost of goods sold = 430 units x $3.89 = $1,672.70

ending inventory = 170 units x $3.89 = $661.30

Explanation:

Beginning inventory on January 1: 390 $3.80 = $1,482

Purchase on January : 90 $4.00 = $360

Purchase on January 25: 120 $4.10 = $492

total number of units = 600

total value = $2,334

average cost per unit = $3.89

cost of goods sold = 430 units x $3.89 = $1,672.70

ending inventory = 170 units x $3.89 = $661.30