Use the following information for questions below
A company had the following inventory activity during June:
$\begin{array}{lrrr}
&{\text { Units }}& {\text { Unit Cost }} & {\text { Total Cost }}\\hline
&450 & \$ 9.50 & \$ 4,275\
Beginning~ inventory~ Purchases:\
~~~~~~~~~~~June ~5&1,500 & 10.00 & 15,000 \
~~~~~~~~~~~June ~13&900 & 10.25 & 9,225 \
Sales:\
~~~~~~~~~~~June~ 8&1,100 & & \
~~~~~~~~~~~June~ 24&600 & &
\end{array}$
-If the company is using a weighted-average cost formula and a periodic system,what is the ending inventory closest to?
A)$11,925
B)$11,415
C)$11,500
D)$11,585

Question

Quizplus · Accepted Answer

Using the weighted-average cost formula, the cost per unit is calculated by dividing the total cost of goods available for sale by the total units available for sale. 
Total cost of goods available for sale = (100 units x $95) + (150 units x $100) = $9,500 + $15,000 = $24,500 
Total units available for sale = 100 units + 150 units = 250 units 
Cost per unit = $24,500 ÷ 250 units = $98 
To calculate the ending inventory, we multiply the number of units in ending inventory by the cost per unit. 
Ending inventory = 125 units x $98 = $12,250 
However, this amount includes the 25 units that were purchased on June 30th, which were not accounted for in the inventory calculation. 
Thus, we need to subtract the cost of these 25 units from the total ending inventory. 
25 units x $100 = $2,500 
$12,250 - $2,500 = $9,750 
This means that the ending inventory closest to is $11,500.

Use the Following Information for Questions Below a Company Had

Use the Following Information for Questions Below
a Company Had