Question
West Group Ltd. (WGL) provided the following inventory information for January 2020: Number of units Price paid per unit Purchase January 1 500 $50 Purchase
West Group Ltd. (WGL) provided the following inventory information for January 2020:
Number of units
Price paid per unit
Purchase January 1
500
$50
Purchase January 15
1,000
$60
Purchase January 25
2,000
$70
WGL had NO units on hand at the beginning of January 2020. On January 31, 2020, WGL sold 1,500 units of inventory for $100 each to customers.
Required:
a) Calculate WGL's cost of goods sold for January 2020 using the weighted average method of valuing inventory. (3.5 marks)
b) Calculate WGL's inventory balance at January 2020 using the first-in, first-out method of valuing inventory. (2.5 marks)
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