Question

Using the data below, determine the ending inventory amount assuming the weighted average method under a periodic inventory system.

Beginning inventory 10 units
Purchases 20 units
Total cost of units available for sale $3,000
Ending inventory 12 units

Answer 1

$1200

Step-by-step explanation:

The computation of the ending inventory is shown below:

Weighted Average Cost per unit is

= Cost of units available for sales ÷ units available for sales

= $3000 ÷ 30

= $100

Now

Ending Inventory is

= 12 units × Weighted Average Cost per unit $100

= $1200