Addison, Inc. uses a perpetual inventory system. Below is information about one inventory item for the month of September.

-Use the information in the table to answer this question. If Addison uses the weighted average cost method, what is the inventory balance at the end of September?
A) $1,150.00
B) $1,187.50
C) $1,375.00
D) $1,500.00

Question

Addison, Inc. uses a perpetual inventory system. Below is information about one inventory item for the month of September.
 
-Use the information in the table to answer this question. If Addison uses the weighted average cost method, what is the inventory balance at the end of September?  
A) $1,150.00 
B) $1,187.50 
C) $1,375.00 
D) $1,500.00

Quizplus · Accepted Answer

Weighted average is calculated after each purchase.
Weighted average after Sep. 1 purchase = $20
Weighted average after Sep. 10 purchase = $23.75
Weighted average after Sep. 30 purchase = $27.50
50 units in inv. at Sep. 30 F1F1F1S1. F1F1F10 $27.50 = $1,375.00