Ralwins Company had the following balances and transactions during 2018,from January 1 to December 31: $$\begin{array} { | l | l | }
\hline \text { Beginning Merchandise Inventory } & 200 \text { units at } \$ 83 \
\hline \text { March } 10 & \text { Sold } 100 \text { units } \
\hline & \text { Purchased } 600 \text { units at } \
\text { June } 10 & \$ 86 \
\hline \text { October 30 } & \text { Sold } 300 \text { units } \
\hline
\end{array}$$ What would be reported for ending Merchandise Inventory on the balance sheet at December 31,2018 if the perpetual inventory system and the weighted-average inventory costing method are used? (Round unit costs to two decimal places and total costs to nearest dollar.)

Question

Ralwins Company had the following balances and transactions during 2018,from January 1 to December 31: $$\begin{array} { | l | l | } 
\hline \text { Beginning Merchandise Inventory } & 200 \text { units at } \$ 83 \
\hline \text { March } 10 & \text { Sold } 100 \text { units } \
\hline & \text { Purchased } 600 \text { units at } \
\text { June } 10 & \$ 86 \
\hline \text { October 30 } & \text { Sold } 300 \text { units } \
\hline
\end{array}$$ What would be reported for ending Merchandise Inventory on the balance sheet at December 31,2018 if the perpetual inventory system and the weighted-average inventory costing method are used? (Round unit costs to two decimal places and total costs to nearest dollar.)

Quizplus · Accepted Answer

The weighted-average unit cost is $84.50 (($200 x $83) + (600 x $86)) / (200 + 600). Ending Merchandise Inventory is 200 units ($84.50 x 200 = $16,900).

Ralwins Company Had the Following Balances and Transactions During 2018,from