Numeric Company uses the periodic inventory method and had no beginning inventory. The company purchased 7 units of inventory at $8 per unit during January, 5 units of inventory at $10 per unit during February, and 6 units of inventory at $11.00 per unit during June. The company sold 6 units of inventory during October. There were no additional purchases or sales during the remainder of the year. If Numeric Company uses the weighted average method, what is the cost of its ending inventory?

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Asked Oct 7, 2019
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Numeric Company uses the periodic inventory method and had no beginning inventory. The company purchased 7 units of inventory at $8 per unit during January, 5 units of inventory at $10 per unit during February, and 6 units of inventory at $11.00 per unit during June. The company sold 6 units of inventory during October. There were no additional purchases or sales during the remainder of the year. If Numeric Company uses the weighted average method, what is the cost of its ending inventory?

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Expert Answer

Step 1

Weighted average method is calculated by the cost of goods sold available for sale divided by number of units available for sale.

I...

Weighted
average cost
per unit
$56
Purchase
Cost Price COGS
d Units
$8
7
$10
$50
5
$11
$66
$172 $172/18-$9.5
6
18
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Weighted average cost per unit $56 Purchase Cost Price COGS d Units $8 7 $10 $50 5 $11 $66 $172 $172/18-$9.5 6 18

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