A company purchased 400 units for $30 each on 31 January.It purchased 150 units for $35 each on 28 February.It sold a total of 150 units for $80 each from 1 March to 31 December.If the company uses the weighted-average inventory costing method,calculate the amount of ending inventory on 31 December.(Assume that the company uses a perpetual inventory system. )

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Quizplus · Accepted Answer

The weighted-average cost per unit is calculated as [(400 units * $30) + (150 units * $35)] / (400 + 150) = $31.36. The ending inventory consists of 400 + 150 - 150 = 400 units. Therefore, the ending inventory value is 400 units * $31.36 = $12,544.

A Company Purchased 400 Units for $30 Each on 31