Inventory records for Marvin Company revealed the following:
$$\begin{array} { l l c r }
\text { Date } & { \text { Transaction } } & \begin{array} { c }
\text { Number } \
\text { of Units }
\end{array} & \begin{array} { r }
\text { Unit } \
\text { Cost }
\end{array} \
\text { Mar. 1 } & \text { Beginning inventory } & 1,000 & \$ 7.20 \
\text { Mar. 10 } & \text { Purchase } & 600 & 7.25 \
\text { Mar. 16 } & \text { Purchase } & 800 & 7.30 \
\text { Mar. 23 } & \text { Purchase } & 600 & 7.35
\end{array}$$
Marvin sold 2,300 units of inventory during the month.Ending inventory assuming weighted-average cost would be (round weighted-average unit cost to four decimals if necessary):

Question

Inventory records for Marvin Company revealed the following: 
$$\begin{array} { l l c r } 
\text { Date } &  { \text { Transaction } } & \begin{array} { c } 
\text { Number } \
\text { of Units }
\end{array} & \begin{array} { r } 
\text { Unit } \
\text { Cost }
\end{array} \
\text { Mar. 1 } & \text { Beginning inventory } & 1,000 & \$ 7.20 \
\text { Mar. 10 } & \text { Purchase } & 600 & 7.25 \
\text { Mar. 16 } & \text { Purchase } & 800 & 7.30 \
\text { Mar. 23 } & \text { Purchase } & 600 & 7.35
\end{array}$$
Marvin sold 2,300 units of inventory during the month.Ending inventory assuming weighted-average cost would be (round weighted-average unit cost to four decimals if necessary):

Quizplus · Accepted Answer

To calculate the ending inventory using the weighted-average cost method, first find the total cost of goods available for sale and the total number of units available. Then, divide the total cost by the total units to get the weighted-average cost per unit. Multiply this cost by the number of units in ending inventory to find the ending inventory value. Total cost = (1000 * 7.20) + (600 * 7.25) + (800 * 7.30) + (600 * 7.35) = $16,720. Total units = 1000 + 600 + 800 + 600 = 3000. Weighted-average cost per unit = $16,720 / 3000 = $5.5733. Ending inventory = (3000 - 2300) * $5.5733 = 700 * $5.5733 = $5,087.31, rounded to $5,087.

Inventory Records for Marvin Company Revealed the Following Marvin Sold 2,300 Units of Inventory During the Month