Ask Question
25 July, 02:37

During the year, Wright Company sells 500 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 40 $ 68 $ 2,720 May. 5 Purchase 270 71 19,170 Nov. 3 Purchase 220 76 16,720 530 $ 38,610 Calculate ending inventory and cost of goods sold for the year, assuming the company uses weighted-average cost.

+3
Answers (1)
  1. 25 July, 02:46
    0
    Ending inventory = $2,185.47

    Cost of goods sold = $36,424.53

    Explanation:

    500 units sold at $120

    Date Transaction Units Unit Cost Total Cost

    Jan. 1 Beg. inventory 40 $68 $2,720

    May. 5 Purchase 270 $71 $19,170

    Nov. 3 Purchase 220 $76 $16,720

    Total 530 $72.849 $38,610

    Ending inventory = (530 - 500) x $72.849 = $2,185.47

    Cost of goods sold = 500 x $72.849 = $36,424.53

    When you use the weighted average method, you add the total amount of purchases + beg. inventory, and then divide by the total amount of units.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “During the year, Wright Company sells 500 remote-control airplanes for $120 each. The company has the following inventory purchase ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers