At each purchase and sale weighted average cost of inventory is
determined under weighted average cost method. Below is the
inventory movement schedule:
|
Date |
Particulars |
Units |
Per unit cost |
Total |
|
Apr-01 |
Opening
balance |
20 |
525 |
10,500 |
|
Apr-12 |
Purchase |
30 |
550 |
16,500 |
|
Balance
after purchase |
50 |
540 |
27,000 |
|
|
|
|
|
|
Per
unit cost= Total inventory value/ Total units |
27000/50 |
=540 |
|
|
|
|
|
|
|
Apr-20 |
Sale |
40 |
540 |
21,600 |
|
Balance
after sale |
10 |
540 |
5,400 |
|
|
|
|
|
|
Apr-25 |
Purchase |
15 |
575 |
8625 |
|
Balance
after purchase |
25 |
561 |
14,025 |
|
|
|
|
|
|
Per
unit cost= Total inventory value/ Total units |
14025/25 |
=561 |
|
Balance in inventory is $14,025.
Correct option is C. $14,025
