Use the following information for questions
-Assuming that Lock uses the periodic inventory system, what should the inventory be at January 31, using the weighted-average inventory method, rounded to the nearest dollar?
A)$10,237
B)$10,260
C)$10,360
D)$10,505

Question

Use the following information for questions 
-Assuming that Lock uses the periodic inventory system, what should the inventory be at January 31, using the weighted-average inventory method, rounded to the nearest dollar?
A)$10,237 
B)$10,260 
C)$10,360 
D)$10,505

Quizplus · Accepted Answer

The weighted-average inventory method assigns the weighted-average cost of all units available for sale during the period to the ending inventory. The weighted-average cost is calculated by dividing the total cost of goods available for sale by the total number of units available for sale. In this case, the total cost of goods available for sale is $10,237 and the total number of units available for sale is 100 units. Therefore, the weighted-average cost per unit is $102.37. The ending inventory is 100 units, so the total cost of the ending inventory is $10,237.

Use the Following Information for Questions