A company uses the periodic inventory system and had the following activity during the current...
Question:
A company uses the periodic inventory system and had the following activity during the current monthly period.
| November 1: | Beginning inventory of | 113 Units @ $10 |
| November 5: | Purchased | 113 Units a $26 |
| November 8: | Purchased | 63 Units a $25 |
| November 16: | Sold | 178 Units $110 |
| November 19: | Purchased | 80 Units $20 |
Using the weighted-average inventory method, the company's ending inventory would be:
a. $2.730
b. $3,175
c. $3,749
d. $1.130
e. $4.305
What Is A Periodic Inventory System:
Companies generally must choose between the implementation of a Perpetual or Periodic Inventory System. A Periodic Inventory System implies that the company does not make journal entries after each purchase or sale but generally at the end of the period.
Answer and Explanation: 1
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View this answerThe weighted average cost for all purchases and beginning inventory is: Total price paid / number of total units purchased or on hand
=(113*10+113*26...
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