The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Newtown, Inc. for an operating period.

-Assuming Newtown, Inc., uses weighted-average inventory procedures, the ending inventory cost is:
A) $720.10
B) $721.00
C) $722.00
D) $795.90
E) None of the above

Question

The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Newtown, Inc. for an operating period. 
 
-Assuming Newtown, Inc., uses weighted-average inventory procedures, the ending inventory cost is:
A) $720.10 
B) $721.00 
C) $722.00 
D) $795.90 
E) None of the above

Quizplus · Accepted Answer

Weighted-average cost = (Beginning inventory + Purchases) / (Beginning inventory units + Purchases units)= (200 x $3.50 + 300 x $3.60) / (200 + 300)= $720.10

The Following Data Represent the Beginning Inventory And, in Order