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One of the methods permitted by Generally Accepted Accounting Principle for reporting the value of a firm's inventory is weighted average inventory pricing. Softouch Co.
One of the methods permitted by Generally Accepted Accounting Principle for reporting the value of a firm's inventory is weighted average inventory pricing. Softouch Co. began its fiscal year with an inventory of 960 units valued at $15.84 per unit. During the year it made the purchases listed in the following table. At the end of the year, 135 units remained in its inventory. For full marks your answer(s) should be rounded to the nearest cent. Determine: a) The weighted average cost of the units purchased during the year. b) The weighted average cost of the beginning inventory and all units purchased during the year Weighted average cost =$ c) The value of the ending inventory based on the weighted-average cost calculated in b)
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