Glasgow Enterprises started the period with 80 units in beginning inventory that cost $7.50 each. During the period, the company purchased inventory items as follows. Glasgow sold 220 units after purchase 3 for $17.00 each. Glasgow's ending inventory under weighted average would be approximately:
A) $2,361.
B) $2,340.
C) $1,980.
D) $1,998.

Question

Glasgow Enterprises started the period with 80 units in beginning inventory that cost $7.50 each. During the period, the company purchased inventory items as follows. Glasgow sold 220 units after purchase 3 for $17.00 each.  Glasgow's ending inventory under weighted average would be approximately:
A) $2,361. 
B) $2,340. 
C) $1,980. 
D) $1,998.

Quizplus · Accepted Answer

80 units + 400 units purchased - 220 units sold = 260 units in ending inventory
[(80 × $7.50) + (200 × $9.00) + (150 × $9.30) + (50 × $10.50)] ÷ 480 = $9.00 per unit × 260 = $2,340

Glasgow Enterprises Started the Period with 80 Units in Beginning