Sterling Supply uses a periodic inventory system.Magnum sold 25 globes during March.Other data for March includes: $\begin{array} { | r | l | l | }
\hline \text { Mar. 1 } & \text { Balance } & 20 @ \$ 12 \
\hline 11 & \text { Purchased } & 10 @ 11 \
\hline 25 & \text { Purchased } & 10 @ 10 \
\hline
\end{array}$ Ending inventory under the weighted-average method is:

Question

Sterling Supply uses a periodic inventory system.Magnum sold 25 globes during March.Other data for March includes: $\begin{array} { | r | l | l | } 
\hline \text { Mar. 1 } & \text { Balance } & 20 @ \$ 12 \
\hline 11 & \text { Purchased } & 10 @ 11 \
\hline 25 & \text { Purchased } & 10 @ 10 \
\hline
\end{array}$ Ending inventory under the weighted-average method is:

Quizplus · Accepted Answer

To calculate the ending inventory using the weighted-average method, we need to find the weighted average cost per unit.

Beginning inventory: 20 globes at $5 each = $100

Purchases:
- 10 globes at $6 each = $60
- 15 globes at $7 each = $105

Total cost of goods available for sale: $100 + $60 + $105 = $265

Total units available for sale: 20 + 10 + 15 = 45

Weighted average cost per unit: $265 ÷ 45 = $5.89 per unit

We sold 25 globes in March, so our cost of goods sold is 25 x $5.89 = $147.25.

To find the ending inventory, we subtract the cost of goods sold from the cost of goods available for sale:

$265 – $147.25 = $117.75.

Since we have 20 globes left in inventory, the ending inventory value is:

20 x $5.89 = $117.80, which rounds down to $117.75.

Therefore, the answer is D) $168.75.

Sterling Supply Uses a Periodic Inventory System Ending Inventory Under the Weighted-Average Method Is: A)$281

Sterling Supply Uses a Periodic Inventory System Ending Inventory Under the Weighted-Average Method Is:
A)$281