Given the following information, determine the cost of ending inventory at December 31 using the weighted average perpetual inventory method. Assume this is the first month of the company's operations. December 2: 5 units were purchased at $7 per unit.
December 9: 10 units were purchased at $9.40 per unit.
December 12: 2 units were sold.
A)$17.20
B)$111.80
C)$129.00
D)$94.00
E)$8.60

Question

Quizplus · Accepted Answer

The weighted average cost per unit is calculated after each purchase. After the first purchase, the cost is $7. After the second purchase, the average cost is ($7*5 + $9.40*10) / 15 = $8.60. After selling 2 units, 13 units remain at $8.60 each, totaling $111.80.

Given the Following Information, Determine the Cost of Ending Inventory