Marvin sold 2300 units of inventory during the month Ending

Marvin sold 2,300 units of inventory during the month. Ending inventory assuming weighted-average cost would be (round weighted-average unit cost to four decimals and final answer to the nearest whole dollar):

Inventory records for Marvin Company revealed the following Date Unit Number of Units 1,000 Transaction Mar 1 Beginning inventory $7.20 Mar 10 Mac 16 Mac 23 Purchase Purchase Purchase 600 800 600 7.30 Marvin sold 2.300 units of inventory during the month. Ending inventory assuming weighted-average cost would be (round weighted-average unit cost to four decimals and final answer to the nearest whole dollar): O$5.087 O $5,107 $5.077. O $5,005 O $5.005

Solution

Answer is $5,087

Cost of Goods available for sale = 1,000 * $7.20 + 600 * $7.25 + 800 * $7.30 + 600 * $7.35
Cost of Goods available for sale = $21,800

Number of units available for sale = 1,000 + 600 + 800 + 600
Number of units available for sale = 3,000

Cost per unit = Cost of Goods available for sale / Number of units available for sale
Cost per unit = $21,800 / 3,000
Cost per unit = $7.267

Number of units sold = 2,300

Number of units in ending inventory = Number of units available for sale - Number of units sold
Number of units in ending inventory = 3,000 - 2,300
Number of units in ending inventory = 700

Cost of Ending Inventory = Number of units in ending inventory * Cost per unit
Cost of Ending Inventory = 700 * $7.267
Cost of Ending Inventory = $5,087