inventory records for capetown, incorporated revealed the following:\ndate transaction number of units unit…

inventory records for capetown, incorporated revealed the following:\ndate transaction number of units unit cost\napril 1 beginning inventory 580 $ 2.43\napril 20 purchase 350 2.74\ncapetown sold 610 units of inventory during the month. what is the amount of ending inventory assuming weighted - average cost? note: round weighted - average unit cost to 4 decimals and round your final answer to the nearest whole dollar.\nmultiple choice\n$827\n$783\n$905\n$815

inventory records for capetown, incorporated revealed the following:\ndate transaction number of units unit cost\napril 1 beginning inventory 580 $ 2.43\napril 20 purchase 350 2.74\ncapetown sold 610 units of inventory during the month. what is the amount of ending inventory assuming weighted - average cost? note: round weighted - average unit cost to 4 decimals and round your final answer to the nearest whole dollar.\nmultiple choice\n$827\n$783\n$905\n$815

Answer

Explanation:

Step1: Calculate total cost of goods available for sale

The cost of beginning inventory is $580\times2.43 = 1409.4$. The cost of the purchase is $350\times2.74=959$. So the total cost of goods available for sale is $1409.4 + 959=2368.4$.

Step2: Calculate total number of units available for sale

The beginning - inventory has 580 units and the purchase has 350 units. So the total number of units available for sale is $580 + 350=930$ units.

Step3: Calculate weighted - average unit cost

The weighted - average unit cost $=\frac{2368.4}{930}\approx2.5467$ (rounded to 4 decimals).

Step4: Calculate number of units in ending inventory

The number of units sold is 610. So the number of units in ending inventory is $930−610 = 320$ units.

Step5: Calculate cost of ending inventory

The cost of ending inventory is $320\times2.5467 = 814.944\approx815$ (rounded to the nearest whole dollar).

Answer:

$815$