James Company had the following inventory information for the year ending Decemb
ID: 2611794 • Letter: J
Question
James Company had the following inventory information for the year ending December 31: Units 30 20 50 25 Cost of Goods Available for Sale 125 Total S 90 160 450 300 S 1,000 Unit Cost Beginning Inventory S3 Purchases: March 3 June 15 September 28 12 On December 31, James Company had an ending inventory of 30 units. They use a periodic inventory system to compute the cost of ending inventory Required Using weighted average: (a) Compute the cost of ending inventory (b) Compute the cost of goods sold Cost of ending inventory Cost of goods sold:Explanation / Answer
Average rate per unit =1000/125=$8 Per unit
No of Units Sold =125-30=95 Units
Cost of Ending Inventory =30*$8 Per unit= $240
Cost of Goods Sold =95*$8 Per unit =$760
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