Jammer Company uses a weighted average perpetual inventory system and reports th
ID: 2454790 • Letter: J
Question
Jammer Company uses a weighted average perpetual inventory system and reports the following:
August 2
Purchase
10 units at $12 per unit.
August 18
Purchase
15 units at $15 per unit.
August 29
Sale
20 units.
August 31
Purchase
14 units at $16 per unit.
What is the per-unit value of ending inventory on August 31?
A.
$12.00
B.
$13.80
C.
$15.42
D.
$16.00
E.
$17.74
August 2
Purchase
10 units at $12 per unit.
August 18
Purchase
15 units at $15 per unit.
August 29
Sale
20 units.
August 31
Purchase
14 units at $16 per unit.
Explanation / Answer
C. $15.42 Weighted Average Date Particulars Units Cost Amount 2-Aug Purchase 10.00 12.00 120.00 18-Aug Purchase 15.00 15.00 225.00 Total 25.00 13.80 345.00 29-Aug Sales 20.00 13.80 276.00 Balance 5.00 13.80 69.00 31-Aug Purchase 14.00 16.00 224.00 Balance 19.00 15.42 293.00
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