Answer:
a) The cost of ending inventory using the weighted-average method is:
$439.20
b) The cost of goods sold using the weighted-average method is:
$10,36.80
Explanation:
a) Data and Calculations:
Number purchased Cost per Unit Total
January 1 inventory 40 $4 $160
April 1 60 7 420
June 1 50 8 400
November 1 55 9 495
Total 205 $1,475
Weighted-average cost per unit = $1,475/205 = $7.20
Ending inventory = 61 units * $7.20 = $439.20
Cost of goods sold = 144 units * $7.20 = $10,36.80
b) The weighted-average method allocates the cost of inventory and the cost of goods sold using an average that is based on the total cost of goods available for sale (beginning inventory plus purchases) divided by the total units available for sale.
