Elliot Company uses the periodic inventory system. For the current month, the beginning inventory consisted of 200 units that cost $260 each. During the month, the company made two purchases: 300 units at $276 each and 150 units at $280 each. The company also sold 500 units during the month.
Using the periodic weighted-average cost method, what is the cost of ending inventory?

Question

Quizplus · Accepted Answer

(200 x $260) + (300 x $276) + (150 x $280) = $176,800
Average unit cost at month end = $176,800 / 650 = $272; 150 Units x $272 = $40,800

Elliot Company Uses the Periodic Inventory System