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Cost of ending inventory

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A company made the following merchandise purchases and sales during the month of May:

May 1 purchase 380 units at $15 each
May 5 purchase 270 units at $17 each
May 10 sold 400 units at $50 each
May 20 purchase 300 units at $22 each
May 25 sold 400 units at $50 each

There was no beginning inventory. If the company uses the weighted-average inventory valuation method and the perpetual inventory system, what would be the cost of its ending inventory?

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Solution Summary

The solution explains how to calculate the cost of ending inventory using the weighted-average inventory valuation method.

Solution Preview

In the weighted average method perpetual method, we calculate the average cost after each purchase.
The average cost after May 5 purchase = (380 X 15 ...

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