ab This Question: 1pt 1 or 2010 complete This Test: 28 pts possibie The periodic

Question

ab This Question: 1pt 1 or 2010 complete This Test: 28 pts possibie The periodic inventory records of Synergy Prosthetics indicate the folowing for the month of Juty (Cick the con to view the nentory records) At Judy 31, Synergy counts six unts of inventory on hand Compute ending merchandse inventory and cost of goods sold for Synergy using the weighted average inventory cosing method Weighted-average Ending Merchandise inventory Cost of Goods Sold Atter 0 Dala Table Jul 1 Begrning erchandse ewestory 9 units@5 35 each 8 Purchase 15 Purchase 26 Prchase 8 unts $ 30 each 12 units $ 44 each 18 unts @ $ 42 each Done inter any number in the edit helds and then continue to the reot question

Explanation / Answer

Figures are not properly visible. I am trying my best to put correct figures. Please make changes in figures if wrong figures appear due to unclear image of question

Total value of opening inventory and purchases

= 9 x $35 + 8 x $30 + 12 x $44 + 16 x $42

= $1,755

Total quantity of opening inventory and purchases

= 9 + 8 + 12 + 16

= 45 units

So, weighted average cost per unit

= Total value / Total quantity

= $1,755 / 45

= $39 per unit

Value of closing inventory

= Quantity x Rate

= 6 x $39

= $234

Value of cost of goods sold

= (Total units – closing inventory) x weighted average rate

= (45 – 6) x $39

= $1,521

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