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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