Inventory records for Dunbar Incorporated revealed the following: $$\begin{array} { l l c r }
\text { Date } &{ \text { Transaction } } & \text { Number } & \text { Unit Cost} \
\text { Apr. 1 } & \text { Beginning inventory } & 500 & \text { \$2.40 } \
\text { Apr. 20 } & \text { Purchase } & 400 & 2.50
\end{array}$$ Dunbar sold 700 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 Dunbar Incorporated revealed the following: $$\begin{array} { l l c r } 
\text { Date } &{ \text { Transaction } } & \text { Number } & \text { Unit Cost} \
\text { Apr. 1 } & \text { Beginning inventory } & 500 & \text { \$2.40 } \
\text { Apr. 20 } & \text { Purchase } & 400 & 2.50
\end{array}$$ Dunbar sold 700 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

Weighted-average unit cost = (Beginning inventory units x Beginning unit cost + Purchased units x Purchased unit cost) / (Beginning inventory units + Purchased units)= (500 x 2.40 + 400 x 2.50) / (500 + 400)= (1200 + 1000) / 900= 2200 / 900= 2.4444Ending inventory = Ending inventory units x Weighted-average unit cost= (700 - 700) x 2.4444= 0 x 2.4444= 0Therefore, the ending inventory assuming weighted-average cost would be $0.

Inventory Records for Dunbar Incorporated Revealed the Following Dunbar Sold 700 Units of Inventory During the Month