A company reports the following beginning inventory and purchases for the month

Question

A company reports the following beginning inventory and purchases for the month of January. On January26, the company sells 360 units.
Units Unit Cost
Beginning inventory on January 1 320 $ 6.00
Purchase on January 9 85 6.40
Purchase on January 25 110 6.60

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

Explanation / Answer

Jan   1 Beginning Inventory   320 x $6.00        $1,920
Jan   9 Purchases                   85 x $6.40           $544
Jan 25 Purchases                 110 x $6.60          $726
Total Inventory                    515                    $3,190

Weighted average cost per unit     = $3,190 / 515
                                                   =    $6.194

Cost of Ending inventory 155 units x $6.194 = $960.07

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