Question

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

$

Answer 1

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