Question

The following inventory information is for the Rocky Mountain Cycle Shop.

Date:	Transactions:
March 1	Began with 12 @ $82
7	Purchased 15 @ $84.00
15	Purchased 8 @ $85.00
22	Purchased 12 @ $87.00
28	Purchased 10 @ $88.00

For specification identification, five were left from beginning inventory, three were purchased on March 15, two were purchased on March 22, and the 10 units were included in the March 28 purchase. What was the ending inventory?

Using weighted average find ending inventory for the 20 items left on the shelf?

Answer 1

Specific Identification

Ending Inventory = 5 X 82 + 3 X 85 + 2 X 87 + 10 X 88 = 410 + 255 + 174 + 880 = $ 1,719

Weighted Average

Date	Units	Rate	Amount
Mar 1	12	$   82.00	$          984
Mar 7	15	$   84.00	$       1,260
Mar 15	8	$   85.00	$          680
Mar 22	12	$   87.00	$       1,044
Mar 28	10	$   88.00	$          880
	57		$       4,848
			$       85.05
End	20	$   85.05	$ 1,701.05