Shellhammer Company's Inventory Records Show the Following Data for the Month

question 113

Essay

Shellhammer Company's inventory records show the following data for the month of September: $$\begin{array} { l c c } & \underline { \text { Units} } & \underline { \text { Unit Cost } } \\\text { Inventory, September 1 } &100& \$ 3.34 \\\text { Purchases: September 8 } & 450 & 3.50 \\\quad\quad\quad\quad\quad\text { September 18 }& 350 & 3.70\end{array}$$
A physical inventory on September 30 shows 200 units on hand. Calculate the value of the ending inventory and cost of goods sold if the company uses weighted average inventory costing and a periodic inventory system. Round cost per unit to 2 decimal places and ending inventory and cost of goods sold to the nearest dollar.

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Definitions:

Kanban Size

The quantity of work or materials specified by a Kanban card, used in a pull system to control inventory and workflow.

Setup Cost

The expenses incurred to prepare equipment or processes for manufacturing an order or a batch of goods, including costs for adjusting machines, cleaning, and changing tooling.

Safety Stock

Extra inventory kept on hand to protect against stockouts caused by unpredictable demand or supply delays.