Question

Determine the ending inventory using the periodic inventory system and the weighted average cost method (rounded to the nearest cent), assuming that 18 units were sold at a price of $14. Date Item Units Cost Total June 1 Beginning inventory 6 $5 $30 June 12 Purchase 10 6 60 June 18 Purchase 8 7 56 Totals 24 — $146 a.$36.48 b.$109.44 c.$145.92 d.$56.00

Answer 1

The ending inventory using the periodic inventory system and the weighted average cost method is $36.48

Step-by-step explanation:

Weighted Average Method.

The average cost of goods held is recalculated each time a new delivery of goods is received. Issues are then priced out at this weighted average cost.

First Calculate the average cost per unit

average cost per unit = Total cost / total units

= ($30 + $60 + $56) / 24

= $6.08

Then calculate ending inventory cost

ending inventory cost = units at hand × average cost per unit

= 6 units × $6.08333

= $36.48

Conclusion :

The ending inventory using the periodic inventory system and the weighted average cost method is $36.48