Question

Hooper Company uses the periodic inventory system. For the current month, the beginning inventory consisted of 200 units that cost $130 each. During the month, the company made two purchases: 300 units at $138 each and 150 units at $140 each. The company also sold 500 units during the month. Using the periodic weighted-average cost method, what is the cost of ending inventory?

Answer 1

Inventory= $20,400

Step-by-step explanation:

Giving the following information:

For the current month, the beginning inventory consisted of 200 units that cost $130 each. During the month, the company made two purchases: 300 units at $138 each and 150 units at $140 each. The company also sold 500 units during the month.

Inventory in units= 200 + 300 + 150 - 500= 150

Weighted-average cost= (130 + 138 + 140)/3= 136

Inventory (dollars)= 150*136= $20,400