Use the following information for questions 5 and 6. The following information w

Question

Use the following information for questions 5 and 6. The following information was available from the inventory records of Rich Company for January: Units Unit Cost Total Cost Balance at January 1 3,000 $9.77 $29,310 Purchases: January 6 2,000 10.30 20,600 January 26 2,700 10.71 28,917 Sales: January 7 (2,500) January 31 (3,700) Balance at January 31 1,500 5. Assuming that Rich does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar? a. $15,757. b. $15,356. c. $15,390. d. $15,540.

Explanation / Answer

Weighted Avg Rate(Cum. Total/Cum Qty)(5/3)

For the Given question answer is D = Closing Inventory Value Rs.15,540/- Calculation Can be as follows:- Date in Jan (1) Qty (2) Cumilataive Qty (Adding Prev. qty)(3) Rate(4) Total Cost(Qty * Rate) (2*4) CumilativeTotal Cost(5)

Weighted Avg Rate(Cum. Total/Cum Qty)(5/3)

1 3000 3000(3000+0) 9.77 (Given) 29310(Given) 29,310 9.77 6 2000 5000(3000+2000) 10.3(Given) 20600(Given) 49,910(29310+20600) 9.982 7 -2500 2500(5000-2500) 9.982(Weighted AvgCost) 24955 24,955(2500*9.982) 9.982 26 2700 5200(2500+2700) 10.71(Given) 28917 53,872(28917*10.71) 10.36 31 -3700 1500(5200-3700) 10.36 (Weighted AvgCost) 38332 15,540(1500*10.36)

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.