Question

Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 30 units for $35 each.
  

Purchases on December 7	20 units @ $14.00 cost
Purchases on December 14	36 units @ $21.00 cost
Purchases on December 21	30 units @ $25.00 cost

Required:
Monson sells 30 units for $35 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per unit costs to 2 decimal places.)
  

Answer 1

	Cost of goods available for sale			Cost of goods sold			Ending inventory
Date	# of unit	Cost per unit	Total cost	# of unit	Cost per unit	Total cost	# of unit	Cost per unit	Total cost
Dec 7	20	14	280				20	14	280
Dec 14	36	21	756				56	18.50	1036
Dec 15				30	18.50	555	26	18.50	481
Dec 21	30	25	750				56		1231

Cost of ending inventory under weighted average method = $1231