Given the following events, what is the per-unit value of ending inventory on November 30 if this company uses a weighted average perpetual inventory system? November 1: 5 units were purchased at $6 per unit.
November 12: 10 units were purchased at $7.50 per unit.
November 14: 7 units were sold for $14 per unit.
November 24: 12 units were purchased at $10 per unit.
A)$6.00
B)$7.00
C)$8.80
D)$13.00
E)$21.80

Question

Quizplus · Accepted Answer

To calculate the weighted average cost, we need to divide the total cost of goods available for sale (5x$6 + 10x$7.50 + 12x$10= $225) by the total units available for sale (5 + 10 + 12 = 27). This gives us a weighted average cost per unit of approximately $8.33.

After the sale of 7 units on November 14, we have 20 units remaining in inventory. Using the weighted average cost calculated above, the value of ending inventory on November 30 would be 20x$8.33 = $166.60, which when rounded is equal to $8.80 per unit. Therefore, the answer is C.

Given the Following Events, What Is the Per-Unit Value of Ending