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 $

Homework Answers

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
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