QS 5-3 Inventory costing with weighted average perpetual L.O. P1 A company repor

Question

QS 5-3 Inventory costing with weighted average perpetual L.O. P1

A company reports the following beginning inventory and purchases for the month of January. On January 26, the company sells 360 units.

What is the cost of the 155 units that remain in ending inventory at January 31, assuming the costs assigned to ending inventory based on a perpetual inventory system and use of weighted average. (Round your per unit costs to 3 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

A company reports the following beginning inventory and purchases for the month of January. On January 26, the company sells 360 units.

Explanation / Answer

Weighted Average Total Inventory = (320x 6.0) + (85x6.4) + (110x6.6) = 1920+544+726=$3190 Total units = 320+85+110 = 515 Cost per unit = 3190/515 = $ 6.19 Company sells 360 units remaining inventory = (515-360) x 6.19 = 155 x 6.19 = $959.45

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