Exhibit 7-4
RJ, Inc. had the following activity for an inventory item during June:

-Refer to Exhibit 7-4. Assuming RJ, Inc. uses a periodic weighted average cost flow assumption, ending inventory for June would be
A) $512
B) $560
C) $768
D) $720

Question

Exhibit 7-4
RJ, Inc. had the following activity for an inventory item during June:

-Refer to Exhibit 7-4. Assuming RJ, Inc. uses a periodic weighted average cost flow assumption, ending inventory for June would be
A) $512 
B) $560 
C) $768 
D) $720

Quizplus · Accepted Answer

The weighted average cost is calculated by dividing the total cost of goods available for sale by the total number of units available for sale. In this case, the total cost of goods available for sale is $1,280 (560 + 720) and the total number of units available for sale is 16 (8 + 8). Therefore, the weighted average cost per unit is $80 ($1,280 / 16). The ending inventory is 8 units, so the ending inventory value is $640 (8 x $80).

Exhibit 7-4 RJ, Inc. Had the Following Activity for an Inventory Item