Question

In its first month of operations, Kingbird, Inc. made three purchases of merchandise in the following sequence: (1) 155 units at $5, (2) 520 units at $6, and (3) 140 units at $7.

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Calculate the weighted-average unit cost. (Round answer to 2 decimal places, e.g. 15.25.)

Weighted-average unit cost

$enter the Average unit cost in dollars rounded to 2 decimal places

eTextbook and Media

  

  

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Compute the cost of the ending inventory under the average-cost method, assuming there are 280 units on hand. (Round answer to 0 decimal places, e.g. 1,250.)

The cost of the ending inventory

$enter the cost of the ending inventory in dollars rounded to 0 decimal places

Answer 1

Calculation of Cost of Goods Available for Sale

Unit	Unit Costs	Total cost
155	$5	$775
520	$6	$3,120
140	$7	$980
815		$4,875

Weighted-average unit cost = Cost of goods available for sale / Number of units available for sale

= 4,815/815

= $5.91

The cost of the ending inventory= Ending inventory units x Weighted-average unit cost

= 280 x 5.91

= $1,655

Please give a positive rating if you are satisfied with this solution and if you have any query kindly ask.

Thanks!!!