A company uses a weighted-average perpetual inventory system.The following transactions took place during the month of November:

What is the per-unit value of ending inventory on November 30 if this company uses a weighted-average perpetual inventory system? (Round each per unit cost to two decimal points.)
A) $6.00
B) $7.00
C) $8.80
D) $13.00

Question

A company uses a weighted-average perpetual inventory system.The following transactions took place during the month of November:

What is the per-unit value of ending inventory on November 30 if this company uses a weighted-average perpetual inventory system? (Round each per unit cost to two decimal points.)
A) $6.00 
B) $7.00 
C) $8.80 
D) $13.00

Quizplus · Accepted Answer

Using the weighted-average perpetual inventory system, we calculate the cost per unit as follows:
Total cost of goods available for sale = $8,400 + $3,600 = $12,000
Total units available for sale = 1,200 + 600 = 1,800
Cost per unit = $12,000 / 1,800 = $6.67 (rounded to two decimal points)
Using this cost per unit, we can calculate the value of ending inventory as follows:
Ending inventory = 180 units x $6.67 = $1,200
Therefore, the per-unit value of ending inventory on November 30 is $6.67, which is closest to answer choice C ($8.80 is too high and both $6.00 and $7.00 are too low).

A Company Uses a Weighted-Average Perpetual Inventory System