Calculate cost of ending inventory using weighted average


Response to the following problem:

The MegaPixel Company Ltd. had the following inventory transactions for the month of December:

Dec.    1 Opening Inventory       20 units @ $4.60
              8 Purchased               80 units @ $5.00
            15 Purchased               40 units @ $5.30
            22 Purchased               60 units @ $5.60
            31 Purchased               40 units @ $5.50

By December 31, 190 of the units had been sold by MegaPixel. Assume the company uses the periodic inventory system.

Required: Calculate the cost of the ending inventory using each of

1. FIFO

2. Specific identification (assume the most recent purchases are sold first)

3. Weighted average.

 

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Cost Accounting: Calculate cost of ending inventory using weighted average
Reference No:- TGS02089608

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