On August 1, Micro Encoders, Inc. had 120 units of a certain software package that cost $6 per unit. During August, the following purchases were made: August 7 60 units @ $9.00 per unit
15 80 units @ $12.00 per unit
21 140 units @ $10.50 per unit
During August, 300 units were sold. If Micro Encoders uses the weighted average method, the cost of ending inventory would be
A) $922.50
B) $2,767.50
C) $937.50
D) $2,812.20

Question

Quizplus · Accepted Answer

Weighted average cost per unit = (120 x $6 + 60 x $9 + 80 x $12 + 140 x $10.50) / (120 + 60 + 80 + 140) = $9.75Cost of ending inventory = 120 units x $9.75 = $922.50