Use the following information for questions

-Assuming that Lock 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)$10,505.
B)$10,237.
C)$10,260.
D)$10,360.

Question

Use the following information for questions 
 
-Assuming that Lock 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)$10,505. 
B)$10,237. 
C)$10,260. 
D)$10,360.

Quizplus · Accepted Answer

The weighted-average method calculates the average cost per unit of inventory to determine the cost of goods sold and ending inventory. Using the information provided, the calculation for the weighted-average cost per unit is:
[(300 * $35.50) + (400 * $34.50) + (200 * $33.75)] / 900 = $34.28
To determine the ending inventory, multiply the remaining units (100) by the weighted-average cost per unit, which is:
100 * $34.28 = $3,428
Adding the cost of the remaining units to the cost of goods sold ($7,809), the total inventory at January 31 is:
$3,428 + $7,809 = $11,237
Rounding to the nearest dollar, the inventory at January 31 is $10,237. Therefore, the best choice is B.

Use the Following Information for Questions