a company made purchases as follows. find the inventory value using three different methods. beginning…

a company made purchases as follows. find the inventory value using three different methods. beginning inventory 250 units at $1.50 june 500 units at $1.60 july 670 units at $1.10 august 210 units at $1.15 now in inventory 390 units find the inventory value using the weighted average method. $ (round to the nearest cent as needed.)

a company made purchases as follows. find the inventory value using three different methods. beginning inventory 250 units at $1.50 june 500 units at $1.60 july 670 units at $1.10 august 210 units at $1.15 now in inventory 390 units find the inventory value using the weighted average method. $ (round to the nearest cent as needed.)

Answer

Explanation:

Step1: Calculate total cost of goods available for sale

Beginning inventory cost: (250\times1.50 = 375) June purchase cost: (500\times1.60=800) July purchase cost: (670\times1.10 = 737) August purchase cost: (210\times1.15=241.5) Total cost (C=375 + 800+737+241.5=2153.5) Total units (U=250 + 500+670+210=1630)

Step2: Calculate weighted - average cost per unit

Weighted - average cost per unit (w=\frac{C}{U}=\frac{2153.5}{1630}\approx1.321166)

Step3: Calculate inventory value

Inventory value (V = 390\times w) (V=390\times1.321166\approx515.25)

Answer:

(515.25)