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estion 9 [5 points] of the methods permitted by Generally Accepted Accounting Principle for reporting the value of a firm's inventory is weighted average inventory pricing. stCo began its fiscal year with an inventory of 465 units valued at 14.47 per unit. During the year it made the purchases listed in the following table. Date Units purchased Unit cost () April 22 425 15.15 May 15 815 15.12 vember 7 740 15.23 Date Units purchased Unit cost () April 22 425 15.15 May 15 815 15.12 vember 7 740 15.23 the end of the year, 140 units remained in its inventory. For full marks your answer(s) should be rounded to the nearest cent. termine: The weighted average cost of the units purchased during the year. Weighted average cost =0.00 The weighted average cost of the beginning inventory and all units purchased during the year. Weighted average cost =0.00 The value of the ending inventory based on the weighted-average cost calculated in b).

Question

estion 9 [5 points] of the methods permitted by Generally Accepted Accounting Principle for reporting the value of a firm's inventory is weighted average inventory pricing. stCo began its fiscal year with an inventory of 465 units valued at 14.47 per unit. During the year it made the purchases listed in the following table. Date Units purchased Unit cost () April 22 425 15.15 May 15 815 15.12 vember 7 740 15.23 Date Units purchased Unit cost () April 22 425 15.15 May 15 815 15.12 vember 7 740 15.23 the end of the year, 140 units remained in its inventory. For full marks your answer(s) should be rounded to the nearest cent. termine: The weighted average cost of the units purchased during the year. Weighted average cost =0.00 The weighted average cost of the beginning inventory and all units purchased during the year. Weighted average cost =0.00 The value of the ending inventory based on the weighted-average cost calculated in b).

estion 9 [5 points] of the methods permitted by Generally Accepted Accounting Principle for reporting the value of a firm's inventory is weighted average inventory pricing. stCo began its fiscal year with an inventory of 465 units valued at 14.47 per unit. During the year it made the purchases listed in the following table. Date Units purchased Unit cost () April 22 425 15.15 May 15 815 15.12 vember 7 740 15.23 Date Units purchased Unit cost () April 22 425 15.15 May 15 815 15.12 vember 7 740 15.23 the end of the year, 140 units remained in its inventory. For full marks your answer(s) should be rounded to the nearest cent. termine: The weighted average cost of the units purchased during the year. Weighted average cost =0.00 The weighted average cost of the beginning inventory and all units purchased during the year. Weighted average cost =0.00 The value of the ending inventory based on the weighted-average cost calculated in b).

Solution

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EmilyVeteran · Tutor for 9 years

Answer

<p> </p><br />1. The weighted average cost of the units purchased during the year.<br /><br />Units = 425 + 815 + 740 = 1980<br /><br />Total cost = 425(15.15) + 815(15.12) + 740(15.23)<br /><br />Weighted average cost = Total cost / Units<br /><br />2. The weighted average cost of the beginning inventory and all units purchased during the year.<br /><br />Total units = beginning inventory(units) + Units purchased = 465 + 1980 <br /><br />Total cost = beginning inventory(units * unit cost) + Total cost from above<br /><br />Weighted average cost = Total cost / Total Units<br /><br />3. The value of the ending inventory based on the weighted-average cost calculated in b)<br /><br />Value of ending inventory = remaining units * weighted average cost (calculated in b)

Explain

<p></p> <br /><br />1. To calculate the weighted average cost of the units purchased during the year, we need to multiply each purchase (units * unit cost) and sum these amounts. Then we divide this total amount by the total number of units purchased this year. <br /><br />2. The weighted average cost of the beginning inventory and all units purchased during the year insets an additional parameter - beginning inventory, which should be added to the total cost and the total units.<br /><br />3. The value of the end inventory based on the weighted-average cost gives the total cost of the remaining entire stock piece in the market. It is calculated by multiplying total remaining unit with the weighted-average cost calculated in (b).
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