Koontz Company uses the perpetual inventory method. On January 1, Year 1, the co
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Question
Koontz Company uses the perpetual inventory method. On January 1, Year 1, the company’s first day of operations, Koontz purchased 550 units of inventory that cost $3.10 each. On January 10, Year 1, the company purchased an additional 800 units of inventory that cost $3.90 each. If Koontz uses a weighted average cost flow method and sells 700 units of inventory, the amount of inventory appearing on balance sheet following the sale will be approximately: (Round your intermediate calculations to one decimal place.)
Multiple Choice
$2,015.
$2,340.
$2,520.
Koontz Company uses the perpetual inventory method. On January 1, Year 1, the company's first day of operations, Koontz purchased 550 units of inventory that cost $3.10 each. On January 10, Year 1, the company purchased an additional 800 units of inventory that cost $3.90 each. If Koontz uses a weighted average cost flow method and sells 700 units of inventory, the amount of inventory appearing on balance sheet following the sale will be approximately: (Round your intermediate calculations to one decimal place.) Multiple Choice 2,01 SI SMO la $2,520 Prev 8 of 11 ll Next>Explanation / Answer
Calculate weighted average ending inventory :
Weighted average cost per unit = 4825/1350 = 3.6 per unit
Weighted average ending inventory = 3.6*650 = 2340
so answer is b) $2340
Unit Cost January 1 purchase 550 1705 January 10 Purchase 800 3120 Total 1350 4825Related Questions
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