Question

# The following inventory transactions took place for Crane Corporation for the month of May: Date Event...

The following inventory transactions took place for Crane Corporation for the month of May:

 Date Event Quantity Cost/ Selling Price May 1 beginning inventory 2,060 \$3.30 May 5 purchase 5,320 3.50 May 10 purchase 3,900 3.60 May 15 sale 5,900 6.50 May 20 sale 1,970 6.50 May 22 purchase 4,130 3.80 May 24 purchase 2,020 3.80 May 25 sale 5,980 6.50

Calculate the ending inventory balance for Crane Corporation, assuming the company uses a periodic inventory system and the weighted average cost formula. (Round average unit costs to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.)

 Ending inventory \$

Ending inventory = \$12,888

Working

 Units Cost per unit value Beginning Balance 2060 \$                     3.30 \$ 6,798 Purchases 5320 \$                     3.50 \$ 18,620 3900 \$                     3.60 \$ 14,040 4130 \$                     3.80 \$ 15,694 2020 \$                     3.80 \$ 7,676 Cost of goods available for sale 17430 \$ 62,828

.

 Average Cost of Inventory Units (A) 17430 Total Cost (B) \$ 62,828 Average Cost (C=B/A) \$ 3.60

.

 Weighted Average method Total Units Available for sale 17430 Units Sold 13850 Closing Stock in Units 3580 Valuation Ending Inventory 3580 @ \$               3.60 \$            12,888 Value Of Ending Inventory \$            12,888 Cost of Goods sold (Total Purchase and opening stock Minus Closing Stock) \$            49,940

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