Rodriguez Inc.had the following balances and transactions during 2014,from January 1 to December 31: What would the Ending Merchandise Inventory amount be as reported on the balance sheet at December 31,2014 if the perpetual weighted-average costing method is used? (Round your intermediate calculations to two decimal places.)

Question

Rodriguez Inc.had the following balances and transactions during 2014,from January 1 to December 31:  What would the Ending Merchandise Inventory amount be as reported on the balance sheet at December 31,2014 if the perpetual weighted-average costing method is used? (Round your intermediate calculations to two decimal places.)

Quizplus · Accepted Answer

Using the perpetual weighted-average costing method, we need to calculate the weighted-average cost per unit for the merchandise inventory. 
Total cost of goods available for sale = Beginning Inventory + Purchases = $4,500 + $21,000 = $25,500
Total units available for sale = Beginning Inventory units + Purchases units = 150 + 750 = 900 units
Weighted-average cost per unit = Total cost of goods available for sale / Total units available for sale = $25,500 / 900 = $28.33 per unit

To calculate the ending inventory value, we need to multiply the number of units in ending inventory by the weighted-average cost per unit.
Ending inventory units = 240 units (300 units - 60 units sold)
Ending Inventory value = Ending inventory units × Weighted-average cost per unit = 240 units × $28.33 per unit = $8,160

Therefore, the Ending Merchandise Inventory amount as reported on the balance sheet at December 31, 2014, using the perpetual weighted-average costing method is $8,160. Option A is the best choice.