Financial Reporting and Analysis Q229
| Date | Purchased | Sold | Cost perbale | Price perbale |
| January 1 | 180 | 0 | 200 | 250 |
| February 1 | 20 | 150 | 210 | 250 |
| March 1 | 0 | 25 | 225 | 275 |
| April 1 | 200 | 0 | 225 | 275 |
| May 1 | 100 | 0 | 250 | 280 |
| June 1 | 0 | 175 | 275 | 300 |
What is the cost of ending inventory?
- Option : A
- Explanation : Weighted average cost per unit = Total cost incurred ÷ Toatal units purchased. Weighted average cost per unit = [(180 * 200) + (20 * 210) + (200 * 225) + (100 * 250)] ÷ 500 = 110,200/500 = $220.4 Ending inventory = Number of units remaining * weighted average cost Ending inventory = [(180 + 20 + 200 + 100) - (150 + 25 + 175)] * 220.4 = $33,060.
