Consider the Following Inventory Information for Last Year The Company Uses a Periodic Inventory System

question 136

Essay

Consider the following inventory information for last year:
$$\begin{array} { | l | r | r | r | } \hline & \text { Number of units } & \text { Cost per unit } & \text { Total cost } \\\hline \text { Beginning inventory, Jan 1 } & 8,000 & \$ 20 & \$ 160,000 \\\hline \text { Purchase, March } & 7,000 & 25 & 175,000 \\\hline \text { Purchase, July } & 10,000 & 30 & 300,000 \\\hline \text { Purchase, October } & 5,000 & 41 & 205,000 \\\hline \text { Goods available for sale } & 30,000 & & 840,000 \\\hline\end{array}$$ The company uses a periodic inventory system. The year-end inventory count indicated 3,700 units in inventory.
Required:
a. Calculate the weighted-average cost per unit for the year.
b. Calculate the ending inventory value and the cost of goods sold for the year.

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Definitions:

Projection

In psychology, a defense mechanism where individuals ascribe their own unacceptable feelings or thoughts onto others.

Mental Process

The internal, covert activities of our minds, such as thinking, feeling, and remembering.

Own Feelings

Personal emotions or sensations experienced by an individual.

Organizational Behavior

The study of both group and individual performance and activity within an organization, focusing on understanding, predicting, and influencing behavior.