Sterling Supply uses a periodic inventory system. Magnum sold 25 globes during March. Other data for March includes: 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:  Ending inventory under the weighted-average method is:

Quizplus · Accepted Answer

To find the ending inventory using the weighted-average method, we first need to calculate the weighted-average cost per unit. 
Beginning inventory = $200, 
Purchase = $360/30 units = $12 per unit, 
Cost of goods available for sale = $200 + $360 = $560, 
Total units available for sale = 30 + 25 = 55.

Weighted-average cost per unit = (Beginning Inventory × Cost per unit) + (Purchase × Cost per unit) / Total units available for sale 
= ($200 × $10) + ($360 × $12) / 55 
= $2,000 + $4,320 / 55 
= $6,320 / 55 
= $115.27 (rounded to the nearest cent).

Ending inventory = (Units on hand × Weighted-average cost per unit) 
= (30 units × $115.27) 
= $3,458.10.

Therefore, the correct answer is D) $168.75.

Sterling Supply Uses a Periodic Inventory System