Question

TES During the year, Wright Company sells 450 remote-control al planes for $100 each. The company has the following inventory purchase transactions for the year Numa al Units DateTransaction Jan. 1 Beginning Inventory May 5 Purchase Nov. 3 Purchase Unit Cost Total Cost $ 4,050 20,580 10,910 245 40540 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.) Cost of Goods Ava Salcast of Goods Sod-Welged Average cost Ending Inventory-Weighted Average cost Average Cost of Goods Cost per Ending Averag Cost per Unit of units nonding Among COS Beginning 4.050 20.580 16 930 HEL

Answer 1

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`	Cost of goods available for sale			Cost of goods sold			Ending Inventory
Weighted average cost	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory      (A) - (B)	Cost per unit	Ending Inventory
Beginning Inventory	50	$            81	$       4,050
Purchases:
May-05	245	$            84	$     20,580
Nov-23	190	$            89	$     16,910
Total	485	$ 85.6495	41,540	450	$ 85.6495	38,542	35	$ 85.6495	2,998

	Net Income	=	$            5,000
	Workings:
	Net Income:
	Revenue	=	$         17,000
Less:	Expenses	=	$        -12,000
	Net Income	=	$            5,000

Correct option is: D. $60,730
Workings:
Straight Line method:-
Depreciation expense	=	(Cost - Residual value) / useful Value
	=	($74000 - $7650) / 5 years
	=	$     13,270	per year
Book Value, at December 31, 2018	=	$74000 - $13270
	=	$     60,730