On May 1, Mikrotek, Inc.had 120 units of a certain software package that cost $6 apiece.During May, the following purchases were made: $\begin{array}{ll}
\text { May 7 } & 60 \text { units @ } \$ 9.00 \
15 & 80 \text { units } @ \$ 12.00 \
21 & 140 \text { units@ } \$ 10.50
\end{array}$
During May, 300 units were sold.If Mikrotek uses the weighted average method, the cost of ending inventory would be
A)$ 922.50
B)$2, 767.50
C)$ 937.50
D)$2, 182.50

Question

On May 1, Mikrotek, Inc.had 120 units of a certain software package that cost $6 apiece.During May, the following purchases were made: $\begin{array}{ll}
\text { May 7 } & 60 \text { units @ } \$ 9.00 \
15 & 80 \text { units } @ \$ 12.00 \
21 & 140 \text { units@ } \$ 10.50
\end{array}$
 During May, 300 units were sold.If Mikrotek uses the weighted average method, the cost of ending inventory would be
A)$ 922.50
B)$2, 767.50
C)$ 937.50
D)$2, 182.50

Quizplus · Accepted Answer

Weighted average cost per unit = $10.50Ending inventory = 120 units + 60 units + 80 units + 140 units - 300 units = 100 unitsCost of ending inventory = 100 units x $10.50 = $1,050

On May 1, Mikrotek, Inc During May, 300 Units Were Sold