a company uses the periodic inventory system and had the following activity during the current monthly…

a company uses the periodic inventory system and had the following activity during the current monthly period. date activities units acquired at cost units sold at retail november 1 beginning inventory 120 units @ $20 = $2,400 november 5 purchase 110 units @ $22 = $2,420 november 8 purchase 60 units @ $23 = $1,380 november 16 sales 220 units @ $45 november 19 purchase 60 units @ $25 = $1,500 using the weighted - average inventory method, the companys ending inventory would be: o $2,860 o $2,700 o $2,400 o $2,440 o $4,840

a company uses the periodic inventory system and had the following activity during the current monthly period. date activities units acquired at cost units sold at retail november 1 beginning inventory 120 units @ $20 = $2,400 november 5 purchase 110 units @ $22 = $2,420 november 8 purchase 60 units @ $23 = $1,380 november 16 sales 220 units @ $45 november 19 purchase 60 units @ $25 = $1,500 using the weighted - average inventory method, the companys ending inventory would be: o $2,860 o $2,700 o $2,400 o $2,440 o $4,840

Answer

Explanation:

Step1: Calculate total cost of goods available for sale

Total cost = $2400 + 2420+1380 + 1500=$7700$

Step2: Calculate total number of units available for sale

Total units = $120 + 110+60 + 60=350$ units

Step3: Calculate weighted - average cost per unit

Weighted - average cost per unit = $\frac{7700}{350}=$22$ per unit

Step4: Calculate number of units in ending inventory

Units in ending inventory = $350 - 220 = 130$ units

Step5: Calculate cost of ending inventory

Cost of ending inventory = $130\times22=$2860$

Answer:

$2860$