Assume that Wally World uses a periodic weighted average inventory system. During the year, it had two sales. Calculate the weighted average cost per unit on hand as of June 30 when it figured its cost of goods sold for the month.

Date

Activity

Jan. 1

Beginning Inventory

8 @ $12

Jun. 5

Purchase

12 @ $15

Jun. 28

Purchase

10 @ $18

Jun. 8

Sale

6 units

Jun. 30

Sale

8 units

Question

Assume that Wally World uses a periodic weighted average inventory system. During the year, it had two sales. Calculate the weighted average cost per unit on hand as of June 30 when it figured its cost of goods sold for the month.

Date

Activity

Jan. 1

Beginning Inventory

8 @ $12

Jun. 5

Purchase

12 @ $15

Jun. 28

Purchase

10 @ $18

Jun. 8

Sale

6 units

Jun. 30

Sale

8 units

BlackTom AI · Accepted Answer

To approach this problem, we first identify that Wally World uses a periodic weighted average method for inventory costing. We must determine the weighted average cost per unit of goods available for sale during the period, which is then used to value COGS and ending inventory for June 30.

Option 1: $15.20/unit
This value comes from calculating the cost of goods available for sale divided by the total units available for sale during the period. Beginning inventory: 8 units at $12 = $96. Purchases: 12 units at $15 = $180; 10 units at $18 = $180. Total units available = 8 + 12 + 10 = 30 units. Total cost = $96 + $180 + $180 = $456. Weighted average cost per unit = $456 / 30 = $15.20. Since ending inventory (before applying COGS) would be valued at this average, this option aligns with the periodic weighted-average calculation.

Option 2: $15/unit
This would be a rounded or simplified figure that does not match the precise calculation. The exact weighted average per unit is $15.20, not $15.00, given the totals above. Rounding to $15.00 would misstate the average cost per unit in this scenario.

Option 3: $10/unit
A $10 per unit cost would imply a much lower average than any of the actual costs in the period, and would not reflect the weighted combination of $12, $15, and $18 costs across 30 units. This value ignores the actual cost data and unit counts.

Option 4: $18/unit
An $18 per unit average would suggest that all units were valued at the highest unit cost, which is inconsistent with the presence of cheaper costs ($12 and $15) in beginning inventory and purchases. The weighted average must account for all cost layers, not just the latest purchase price.

In summary, calculating the weighted average cost per unit requires combining all inventory layers: 8 units at $12, 12 units at $15, and 10 units at $18, totaling 30 units and $456 in cost, yielding $15.20 per unit. The other options reflect common pitfalls like rounding errors, ignoring some cost layers, or misapplying the averaging concept.

查看解析

登录即可查看完整答案

类似问题

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

Under the assumptions used in cost-volume-profit analysis, as the activity increases:

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单