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1 vote
Date Transaction Number

of Units Unit
Cost
Apr. 1 Beginning inventory 520 $ 2.38
Apr. 20 Purchase 360 2.77

Dunbar sold 610 units of inventory during the month. Ending inventory assuming weighted-average cost would be: (Round weighted-average unit cost to 4 decimal places and final answer to the nearest dollar amount.

User Rahkeem
by
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1 Answer

5 votes

To calculate the ending inventory using the weighted-average cost method, we need to find the average unit cost first.

Total cost of beginning inventory = 520 units * $2.38/unit = $1,241.60

Total cost of purchase = 360 units * $2.77/unit = $997.20

Total units = beginning inventory + purchase = 520 units + 360 units = 880 units

Total cost = cost of beginning inventory + cost of purchase = $1,241.60 + $997.20 = $2,238.80

Weighted-average unit cost = total cost / total units = $2,238.80 / 880 units ≈ $2.5455

Ending inventory = total units - units sold = 880 units - 610 units = 270 units

Ending inventory value = ending inventory * weighted-average unit cost = 270 units * $2.5455/unit ≈ $688.97

Therefore, the ending inventory, assuming weighted-average cost, would be approximately $689.

User Robbin
by
7.8k points