A company reports the following beginning inventory and purchases for the month
ID: 2442885 • Letter: A
Question
A company reports the following beginning inventory and purchases for the month of January. On January26, the company sells 360 units.Units Unit Cost
Beginning inventory on January 1 320 $ 6.00
Purchase on January 9 85 6.40
Purchase on January 25 110 6.60
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Required:
What is the cost of the 155 units that remain in ending inventory at January 31, assuming costs are assigned based on a perpetual inventory system and use of weighted average. (Round your unit costs to 3 decimal places and final answer to nearest whole dollar amount. Omit the "$" sign in your response.)
Explanation / Answer
Jan 1 Beginning Inventory 320 x $6.00 $1,920
Jan 9 Purchases 85 x $6.40 $544
Jan 25 Purchases 110 x $6.60 $726
Total Inventory 515 $3,190
Weighted average cost per unit = $3,190 / 515
= $6.194
Cost of Ending inventory 155 units x $6.194 = $960.07