Question

A company uses the periodic inventory system and had the following activity during the current monthly period.
November 1: Beginning inventory 103 Units @ $20
November 5: Purchased 103 Units @ $22
November 8: Purchased 53 Units @ $23
November 16: Sold 138 Units @ $60
November 19: Purchased 30 Units @ $25
Using the weighted-average inventory method, the company's ending inventory would be:
Multiple Choice
$4,029
$3,289
$2,060
$2,810
$1,969

Answer 1

Answer:

The answer is: $3,289

Explanation:

Date                 Units                 Unit price           Inventory      Average cost

Purchases

Nov. 1             103 units             $20 per unit        $2,060        $20 per unit              

Nov. 5            103 units             $22 per unit        $4,326         $21 per unit

Nov. 8            53 units               $23 per unit        $5,545        $21.41 per unit

Nov. 19           30 units              $25 per unit        $6,295        $21.78 per unit

TOTAL           289 units            $21.78 per unit    $6,295        $21.78 per unit

Sales

Nov. 16          -138 units            $21.78 per unit    $3,006       $21.78 per unit

Ending inventory

Nov. 30          151 units           $21.78 per unit    $3,289       $21.78 per unit