Question

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 450 units. Ending inventory at January 31 totals 170 units.

Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round per unit costs to 3 decimal places. Amounts to be deducted should be indicated with a minus sign.)

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 450 units. Ending inventory at January 31 totals 170 units. Units 410 Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Unit Cost $ 4.00 4.20 4.30 90 120 Required: Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round per unit costs to 3 decimal places. Amounts to be deducted should be indicated with a minus sign.) Periodic Weighted Average Inventory on hand Inventory Cost per # of units unit Value # of units sold Cost of Goods Sold Cost per unit Cost of Goods Sold I Beginning Inventory Purchase - January 9 Purchase - January 25 Available for Sale January Sales Total | $ 0 $ 0

Answer 1

Ans.	Periodic Weighted Average	Inventory on hand			Cost of goods sold
		No. of units	Cost per unit	Inventory Value	No. of units	Cost per unit	Cost of goods sold
	Beginning inventory	410	$4.00	$1,640
	Purchase - January 9	90	$4.20	$378
	Purchase - January 25	120	$4.30	$516
	Available for Sale	620	$4.087	$2,534
	January sales				450	$4.087	$1,839
	Total	170	$4.087	$695	450		$1,839
	Ending Inventory   = $695
	Cost of goods sold = $1,839
	*Average cost per unit = Cost of goods available for sale / Units available for sale
		$2,534 / 620
		$4.087