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6QS

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Financial & Managerial Accounting
Found in: Page 260
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

Refer to the information in QS 5-4 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round per unit costs and inventory amounts to cents.)

Ending inventory totals $465.

See the step by step solution

Step by Step Solution

Definition of Weighted Average Method

The method of inventory valuation under which the per-unit cost changes after each sale and purchase is the weighted average method.

Ending Inventory under Weighted Average Method

Particular

Beginning Inventory/PurchasesCost of goods soldEnding Inventory
UnitPer unit CostTotalUnitPer unit CostTotalUnitPer unit CostTotal

Beginning Inventory

320

$3

$960

320

$3

$960

9 Jan

80

$3.20

$256

400

$3.04

$1,216

25 Jan

100

$3.34

$334

500

$3.1

$1,550

26 Jan

350

$3.1

1,085

150

$3.1

$465

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