Question

Slugging Baseball Co. buys and sells baseballs. They employ the weighted average method of inventory valuation. At the beginning of the year, Slugging Baseball Co. had 211 baseballs which had been purchased at $1.20 per baseball. In June. Slugging Baseball Co. bought 371 baseballs for $2.30 per baseball. In September, Slugging Baseball Co. sold 270 baseballs for $5.90 per baseball. In December, Slugging Baseball Co. bought 460 baseballs for $3.60 per baseball. What is the value of inventory held by Slugging Baseball Co. at the end of the year?

Answer 1

Solution:

Computation of ending inventory COGS under Weighted Average Cost
Date	Beginning Inventory			Purchase			Cost of Goods Sold			Ending Inventory
	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
Beg Bal	211	$1.20	$253	0	$0.00	$0	0	$0.00	$0	211	$1.20	$253
June	211	$1.20	$253	371	$2.30	$853	0	$0.00	$0	582	$1.90	$1,107
September	582	$1.90	$1,107	0	$0.00	$0	270	$1.90	$513	312	$1.90	$593
December	312	$1.90	$593	460	$3.60	$1,656	0	$0.00	$0	772	$2.91	$2,249
Total									$513	772		$2,249