Question

the following inventory data are available for the company: transactions units unit cost beg. inventory 1/1/2024 700 $22 purchase in february 600 $20 purchase in july 700 $18 a count of inventory at year end (12/31/2024) revealed that 600 units remained on hand in ending inventory. q. what was the cost of goods sold and ending inventory for the year using the weighted average cost inventory method? ending inventory $29,200; cost of goods sold $10,800 ending inventory $28,000; cost of goods sold $12,000 ending inventory $12,000; cost of goods sold $28,000 ending inventory $10,800; cost of goods sold $29,200

Explanation:

Step1: Calculate total cost of goods available for sale

Total units available = $700 + 600+700=2000$ units.
Total cost = $(700\times22)+(600\times20)+(700\times18)$
$=15400 + 12000+12600$
$=40000$.

Step2: Calculate weighted - average unit cost

Weighted - average unit cost = $\frac{40000}{2000}=20$ dollars per unit.

Step3: Calculate cost of ending inventory

Ending inventory = $600\times20 = 12000$ dollars.

Step4: Calculate cost of goods sold

Cost of goods sold = Total cost of goods available for sale−Cost of ending inventory.
Total cost of goods available for sale is $40000$ and ending inventory is $12000$.
So, cost of goods sold = $40000 - 12000=28000$ dollars.

Answer:

Ending Inventory $12,000; Cost of Goods Sold $28,000