Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
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
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 purchased at per $14 unit November 24, 12 units were purchased at per $10 unit
a. $6.00
b. $7.00
c. $8.80
d. $13.00
e. $21.80
Expert Solution
Answer: c .
Calculation of the per-unit value of ending inventory
November 1: 5 unit * $6 per unit = $ 30 (Purchased)
November 12: 10 unit *7.50= $75 (Purchased)
November 14: 7units *$7 per unit = $49 (Cost of goods sold) ((6+7.5)/2=$7.00)
November 24: 12 unit * $10 = $120 (Purchased)
Weighted -average perpetual inventory balance:
November 1: 5 unit * $6 per unit = $ 30
November 12: 10 unit *7.00= $105 [((6+7.5)/2=$7.00)*(10+5)]
November 14: 8 units *$7 per unit = $56 [(10+5-7)* ((6+7.5)/2=$7.00)]
November 24: 20 unit * $8.8 = $176 [(10*12)+56/(10+5-7+12)] =$8.80
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
