Use the​ weighted-average inventory method to calculate the cost of the ending inventory for the inventory table below.

**Date of purchase**

**Units purchased**

**Cost per unit**

**Total cost**

**Retail price per unit**

**Total retail value**

Beginning inventory

9696

​$1212

​$1 comma 1521,152

​$1616

​$1 comma 5361,536

February 5

2121

​$88

​$168168

​$1313

​$273273

February 19

1717

​$1111

​$187187

​$1616

​$272272

March 3

3535

​$1414

​$490490

​$2222

​$770770

Goods available for sale

169169

​$1 comma 9971,997

​$2 comma 8512,851

Units sold

8989

Ending inventory

8080




To calculate the cost of the ending inventory using the weighted-average inventory method, we need to find the average cost per unit for the goods available for sale and then multiply this by the number of units in the ending inventory.

Here's the data provided:

| **Date of purchase** | **Units purchased** | **Cost per unit** | **Total cost** | **Retail price per unit** | **Total retail value** |
|----------------------|---------------------|-------------------|----------------|--------------------------|------------------------|
| Beginning inventory  | 96                  | $12               | $1,152         | $16                      | $1,536                 |
| February 5           | 21                  | $8                | $168           | $13                      | $273                   |
| February 19          | 17                  | $11               | $187           | $16                      | $272                   |
| March 3              | 35                  | $14               | $490           | $22                      | $770                   |
| **Goods available for sale** | 169 |   | $1,997 |   | $2,851 |
| Units sold           | 89                  |                   |                |                          |                        |
| **Ending inventory** | 80                  |                   |                |                          |                        |

**Step 1: Calculate the total cost of goods available for sale.**
This is already given as $1,997.

**Step 2: Calculate the average cost per unit.**
\[ \text{Average cost per unit} = \frac{\text{Total cost of goods available for sale}}{\text{Total units available for sale}} \]
\[ \text{Average cost per unit} = \frac{1,997}{169} \]
\[ \text{Average cost per unit} \approx \$11.82 \]

**Step 3: Calculate the cost of the ending inventory.**
\[ \text{Cost of ending inventory} = \text{Average cost per unit} \times \text{Units in ending inventory} \]
\[ \text{Cost of ending inventory} = 11.82 \times 80 \]
\[ \text{Cost of ending inventory} \approx \$945.60 \]

So, the cost of the ending inventory is approximately $ \$945.60 $.

Would you like more details or have any questions about this calculation?

Here are some additional questions you might find useful:

1. How does the weighted-average inventory method differ from FIFO and LIFO?
2. What are the advantages of using the weighted-average inventory method?
3. Can you explain the impact of inventory valuation methods on financial statements?
4. How do you account for inventory shrinkage in inventory valuation?
5. What are the steps to switch from one inventory valuation method to another?

**Tip:** When using the weighted-average inventory method, ensure that all purchase costs are included, and remember to update the average cost per unit after each purchase.

Learn how to calculate the cost of ending inventory using the weighted-average inventory method with step-by-step guidance. This problem involves determining the average cost per unit and applying it to find the ending inventory cost. Suitable for advanced learners and professionals.

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