Table 6-6 Sam's Wholesale Bikes $\begin{array} { | l | l | }
\hline \text { January } 1 \text { inventory balance } & 15 \text { units at } \$ 350 \text { per unit } \
\hline \text { January } 4 \text { purchase } & 50 \text { units at } \$ 375 \text { per unit } \
\hline \text { January } 15 \text { sale } & 40 \text { units at } \$ 550 \text { per unit } \
\hline \text { February } 8 \text { purchase } & 80 \text { units at } \$ 405 \text { per unit } \
\hline \text { February } 15 \text { sale } & 70 \text { units at } \$ 550 \text { per unit } \
\hline
\end{array}$
-Refer to Table 6-6. What is the value of the February ending inventory assuming that Sam's uses the periodic weighted-average inventory method?

Question

Table 6-6 Sam's Wholesale Bikes $\begin{array} { | l | l | } 
\hline  \text { January } 1 \text { inventory balance } & 15 \text { units at } \$ 350 \text { per unit } \
\hline \text { January } 4 \text { purchase } & 50 \text { units at } \$ 375 \text { per unit } \
\hline \text { January } 15 \text { sale } & 40 \text { units at } \$ 550 \text { per unit } \
\hline \text { February } 8 \text { purchase } & 80 \text { units at } \$ 405 \text { per unit } \
\hline \text { February } 15 \text { sale } & 70 \text { units at } \$ 550 \text { per unit } \
\hline
\end{array}$
-Refer to Table 6-6. What is the value of the February ending inventory assuming that Sam's uses the periodic weighted-average inventory method?

Quizplus · Accepted Answer

The periodic weighted-average cost method calculates the average cost of inventory items by dividing the total cost of goods available for sale by the total units available for sale. Here, the total cost of goods available for sale is calculated by adding the cost of the beginning inventory and the cost of purchases. The total units available for sale is the sum of the beginning inventory units and the units purchased. $$ \text{Total Cost} = (15 \times \$350) + (50 \times \$375) + (80 \times \$405) = \$52,400 + \$18,750 + \$32,400 = \$103,550 $$$$ \text{Total Units} = 15 + 50 + 80 = 145 $$$$ \text{Weighted-Average Cost per Unit} = \frac{\$103,550}{145} = \$714.14 $$After the sales (40 units in January and 70 units in February), 35 units remain (145 units - 110 units sold).$$ \text{Ending Inventory Value} = 35 \times \$714.14 = \$24,994.90 $$However, none of the provided options match this calculation. Given the options, it seems there might have been a mistake in the calculation or interpretation of the options. The correct approach involves calculating the total cost of goods available for sale, dividing by the total units to find the weighted-average cost, and then multiplying by the remaining units. The error in the provided answer suggests a reevaluation of the calculation steps or options might be necessary.

Table 6-6 Sam's Wholesale Bikes -Refer to Table 6-6