Chris Company uses the perpetual inventory system and had the following activity during the current monthly...

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Finance

Chris Company uses the perpetual inventory system and had thefollowing activity during the current monthly period.
November1:             BeginningInventory of 100 units @$20
November5:              Purchased100 units @ $22
November8:              Purchased50 units @$23
November16:            Sold200 units @ $45
November19:            Purchased50 units @ $25
Using the weighted-average inventory method, the company'sending inventory would be reported at:
A)   $2,200.
B) $2,320.
C) $2,250.
D) $2,400.
E) $2,270.
The answer is B but I need a detailed explanation because I donot understand this at all.

Answer & Explanation Solved by verified expert

4.2 Ratings (775 Votes)

We need to understand the following table first Weighted average Purchase Issue Balance Sales Revenue Profit Date Unit Rate Amount Unit Rate Amount Unit Rate Amount Unit Rate Sales Revenue Profit 01Nov 100 20 2000 100 20 2000 05Nov 100 22 2200 200 21 4200 0 See Answer

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