Asked by Jaren Harth on Jul 25, 2024
Verified
Use the information in the table to answer this question. If Addison uses the weighted average cost method, what is the inventory balance at the end of September?
A) $1,150.00
B) $1,187.50
C) $1,375.00
D) $1,500.00
Weighted Average Cost
A method of calculating the cost of inventory based on the average cost of all similar goods available during a specific period.
Inventory Balance
The total value of all the goods that a company has in stock at a particular point in time.
- Evaluate the cost of goods sold through a variety of inventory approaches.
- Learn the implementation of perpetual and periodic inventory systems.
Verified Answer
HB
Hallie BrownJul 31, 2024
Final Answer :
C
Explanation :
Weighted average is calculated after each purchase.
Weighted average after Sep. 1 purchase = $20
Weighted average after Sep. 10 purchase = $23.75
Weighted average after Sep. 30 purchase = $27.50
50 units in inv. at Sep. 30 . $27.50 = $1,375.00
Weighted average is calculated after each purchase.
Weighted average after Sep. 1 purchase = $20
Weighted average after Sep. 10 purchase = $23.75
Weighted average after Sep. 30 purchase = $27.50
50 units in inv. at Sep. 30 . $27.50 = $1,375.00
Learning Objectives
- Evaluate the cost of goods sold through a variety of inventory approaches.
- Learn the implementation of perpetual and periodic inventory systems.
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