Question 8 (5 points)

Inventory Costing

The following information relates to the inventory flow of Tom's Sporting Goods:

1 January - beginning inventory is 5 basketball hoops @ $56 each

3 January - purchased 7 basketball hoops @ $58 each

6 January- sold 4 basketball hoops

8 January-purchased 5 basketball hoops @ $44 each

10 January- sold 6 basketball hoops

13 January - sold 7 basketball hoops

Required:

b. Assuming a periodic inventory system, use the weighted average inventory costing method to calculate the cost of the goods sold as a total at the end of the period.