During 2015, a company sells 25 units of inventory. The company has the following inventory purchase transactions for 2015:

Date Transaction Number of Units Unit
Cost Total Cost
Jan. 1 Beginning inventory 20 $ 50 $ 1,000
Sep. 8 Purchase 10 56 560
30 $ 1,560

Calculate ending inventory and cost of goods sold for 2015 assuming the company uses weighted-average cost with a periodic inventory system. (Round weighted-average unit cost to 4 decimal places. Round your final answers to the nearest dollar amount.)

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andromache andromache · Answer 1 · 2020-04-06T13:07:37+02:00

Answer:

$260 and $1,300

Explanation:

Since for computing the ending inventory and cost of goods sold first we have to determine the weighted average cost per unit which is shown below:

= Total cost ÷ Total number of units

= $1,560 ÷ 30

= $52.0000

The sales units is 25 so the cost of goods sold is

= $52 × 25

= $1,300

Out of total 30 units, the 25 units are sold so the remaining 5 units are considered to be ending inventory units

So, the ending inventory is

= 5 units × $52

= $260