James Company had the following inventory information for th

James Company had the following inventory information for the year ending December 31: Units 30 20 50 25 Cost of Goods Available for Sale 125 Total S 90 160 450 300 S 1,000 Unit Cost Beginning Inventory S3 Purchases: March 3 June 15 September 28 12 On December 31, James Company had an ending inventory of 30 units. They use a periodic inventory system to compute the cost of ending inventory Required Using weighted average: (a) Compute the cost of ending inventory (b) Compute the cost of goods sold Cost of ending inventory Cost of goods sold:

Solution

Average rate per unit =1000/125=$8 Per unit

No of Units Sold =125-30=95 Units

Cost of Ending Inventory =30*$8 Per unit= $240

Cost of Goods Sold =95*$8 Per unit =$760