Ronald,Inc.had the following balances and transactions during 2017: $$\begin{array} { | l | l | }
\hline \text { Beginning Merchandise Inventory } & 15 \text { units at } \$ 90 \
\hline \text { March } 10 & \text { Sold } 13 \text { units } \
\hline \text {June } 10 & \text { Purchased } 30 \text { units at } \$ 87 \
\hline \text { October 30 } & \text { Sold } 25 \text { units } \
\hline
\end{array}$$ What is the amount of the company's Merchandise Inventory,as disclosed in the December 31,2017 balance sheet,using the periodic weighted-average inventory costing method? (Round the unit costs to two decimal places and total costs to the nearest dollar. )

Question

Ronald,Inc.had the following balances and transactions during 2017: $$\begin{array} { | l | l | } 
\hline \text { Beginning Merchandise Inventory } & 15 \text { units at } \$ 90 \
\hline \text { March } 10 & \text { Sold } 13 \text { units } \
\hline \text {June } 10 & \text { Purchased } 30 \text { units at } \$ 87 \
\hline \text { October 30 } & \text { Sold } 25 \text { units } \
\hline
\end{array}$$ What is the amount of the company's Merchandise Inventory,as disclosed in the December 31,2017 balance sheet,using the periodic weighted-average inventory costing method? (Round the unit costs to two decimal places and total costs to the nearest dollar. )

Quizplus · Accepted Answer

The weighted-average cost per unit is calculated as follows: [(15 units x $90) + (30 units x $87)] / (15 units + 30 units) = $88.20 per unit. Remaining inventory is 7 units (45 units purchased - 38 units sold). Therefore, the ending inventory is 7 units x $88.20 = $616.

Ronald,Inc What Is the Amount of the Company's Merchandise Inventory,as Disclosed