A company uses a weighted average perpetual inventory system. August 2: 10 units were purchased at $12 per unit.
August 18: 15 units were purchased at $15 per unit.
August 29: 20 units were sold.
August 31: 14 units were purchased at $16 per unit.
What is the per-unit value of ending inventory on August 31?
A)$12.00
B)$13.80
C)$15.42
D)$16.00
E)$17.74

Question

Quizplus · Accepted Answer

To calculate the per-unit value of ending inventory using the weighted average perpetual inventory system, we need to determine the total cost of goods available for sale and divide it by the total units available for sale.

Total cost of goods available for sale:

10 units x $12 per unit = $120 
15 units x $15 per unit = $225 
14 units x $16 per unit = $224

Total cost = $120 + $225 + $224 = $569

Total units available for sale:

10 units + 15 units - 20 units + 14 units = 19 units

Per-unit value of ending inventory on August 31:

$569 / 19 units = $15.42

Therefore, the best choice is C, $15.42.

A Company Uses a Weighted Average Perpetual Inventory System