Monson sells 29 units for $50 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per unit costs to 2 decimal places.)

The complete question:

Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 29 units for $50 each.

Purchases on December 7 20 units at $20.00 each

Purchases on December 14 34 units at $30.00 each

Purchases on December 21 30 units at $36.00 each

Monson uses a perpetual inventory system. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per-unit costs to 2 decimal places.)

Answer:

Trey Monson

Determination of the cost of Ending Inventory based on the Weighted Average Method:

Date Quantity Unit Cost Total Cost

Dec. 7 Purchase 20 $20 $400

Dec. 14 Purchase 34 30 1,020

Total 54 26.30 $1,420.20

Dec. 15 Sale - 29 26.30 - 762.70

Dec 15 Balance 25 26.30 $657.50

Dec. 21 Purchase 30 36 1,080

Dec. 21 Available 55 31.59 $1,737.50

Dec. 31 Ending Inventory 55 $31.59 $1,737.50

Explanation:

To use the weighted average method, we divide the cost of goods available for sale by the number of units available for sale, which yields the weighted-average cost per unit. The cost of goods available for sale is the sum of beginning inventory and net purchases.