Question

During 2021, a company sells 25 units of inventory. The company has the following inventory purchase transactions for 2021 Date Transaction Jan.1 Beginning inventory Sep.8 Purchase Number Unit of Units Cost 20 $50 Total Cost $1,000 700 $1,700 70 Calculate ending inventory and cost of goods sold for 2021 assuming the company uses the weighted average cost method. (Round weighted average unit cost to 4 decimal places. Round your final answers to the nearest dollar amount.) Ending inventory Cost of goods sold < Prev 17 of 40 ? Next >

Answer 1

Solution given as per periodic inventory method.

As per weighted average method goods to be sold at a average cost of total goods available for sale.

Ending Inventory

Total units available	30 units
Units sold	( 25 units)
Ending Inventory	05 units

Ending Inventory	$ 233
Cost of Goods sold	$ 1,417

Weighted Average Cost ( Periodic method )
Transaction	Units	Cost per unit	Total
Beginning Inventory Jan,1	20	$ 50	$ 1,000
Purchase September, 8	10	$ 70	$ 700
Goods available for Sales	30		$ 1,700
Cost of Goods Sold
Sales	25	$ 56.6667	$ 1,417
Ending Inventory ( @ average cost )	05	$ 56.6667	$ 233

       As per weighted average method goods to sold average cost of total

       inventory available for sales as a following solution.

Weighted average Cost per unit               = Total Cost of Goods available / No. Of units for sales               = $ 1,700 / 30 units               = $ 56.6667 per units