Question

Consider the following information for Maynor Company, which uses a periodic inventory system:        Transaction...

Consider the following information for Maynor Company, which uses a periodic inventory system:

   

   Transaction Units Unit Cost Total Cost
  January 1 Beginning Inventory 31 $ 81 $ 2,511
  March 28 Purchase 41 87 3,567
  August 22 Purchase 62 91 5,642
  October 14 Purchase 67 97 6,499
Goods Available for Sale 201 $ 18,219

  

The company sold 67 units on May 1 and 62 units on October 28.
   

Required:

Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods. (Round the per unit cost to two decimal places and then round your answer to the nearest whole dollar.)

   

a.

Weighted Average
Business   Accounting   
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Answer #1

Weighted average cost per unit =Total cost of goods available for sales /units available for sale

              = 18219 /201

             = $ 90.64 per unit

Cost of goods sold =unit sold *per unit cost

          = 129 * 90.64

           = 11693

**unit sold = 67+62=129 units

Ending inventory =cost of goods available for sale -cost of goods sold

          = 18219 - 11693

         = $ 6526

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