A company had 260 units of inventory at a cost of $152 each on January 1. On June 5, the company purchased 460 units for $172 each. On November 10, the company purchased 160 units for $212 each. On December 15, the company sold 520 units. Given this information, determine the cost of the 520 units sold using the weighted average periodic inventory method. (Do not round your intermediate calculations; round the final answer to nearest dollar amount.)
A)$67,920
B)$69,920
C)$90,149
D)$92,149
E)$152,557

Question

Quizplus · Accepted Answer

To use the weighted average periodic inventory method, we need to calculate the weighted average cost per unit.

Step 1: Calculate the total cost of all units purchased

260 units x $152 = $39,520
460 units x $172 = $79,120
160 units x $212 = $33,920
Total cost = $152,560

Step 2: Calculate the total number of units purchased

260 + 460 + 160 = 880

Step 3: Calculate the weighted average cost per unit

$152,560 / 880 = $173.27

Step 4: Calculate the cost of the units sold

520 units x $173.27 = $90,146.40

Rounding to the nearest dollar, the cost of the 520 units sold is $90,149. Therefore, the best answer is C.

A Company Had 260 Units of Inventory at a Cost