Kieso, Intermediate Accounting, 16e Help I System Announcements CALCULATOR PRINT

ID: 2438478 • Letter: K

Question

Kieso, Intermediate Accounting, 16e Help I System Announcements CALCULATOR PRINTER VERSION BACK Multiple Choice Question 98 The following information was available from the inventory records of Bonita Industries for January: Units Unit Cost Total Cost 10000 $10.10 $101000 Balance at January 1 Purchases: January 6 January 26 6000 10.60 63600 600010.70 64200 Sales January 7 January 31 (8000) (11000) 3000 Balance at January 31 ssuming that Bonita does not maintain perpetual inventory records, what should be the inventory at January 31, ing the weighted-average inventory method, rounded to the nearest dollar? O $32413. O $31393. $31200. O $31269.

Explanation / Answer

Under Weighted Avg Inventory Method :-

Unit Cost = Cost of goods available for sale / No. of units available for sale

Cost of goods available for sale :-

Beginning Inventory

101000

Purchase Jan 6

63600

Purchase Jan 26

64200

Cost of goods available for sale

228800

No of Units available for sale = Beginning Units + Purchase Jan 6 + Purchase Jan 26

= 10000 + 6000 + 6000 = 22000 units

Unit Cost = $228800/22000 units = $10.40

Inventory at Jan 31 = 3000 units * $10.40 = $31200