A Jacksonville GC has 100 units at $10 and buys 150 more at $12. Using weighted average, what cost should be assigned to 180 units issued?
Correct Answer
A) $2,016
The weighted average cost is $11.20 per unit, so 180 units cost $2,016.
Why This Is the Correct Answer
The weighted average cost is $11.20 per unit, so 180 units cost $2,016.
Why the Other Options Are Wrong
Option B: $1,980
$1,980 is below the supported result for weighted-average inventory; it likely uses the wrong base, period, or account bucket.
Option C: $2,080
$2,080 is above the supported result for weighted-average inventory; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $2,160
$2,160 is above the supported result for weighted-average inventory; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Weighted and average live in different drawers; Accounting Clerk tells which opens.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Section Two, Accounting for Materials, Controlling Inventory; use the job ledger figures in the stem and recompute the same accounting measure.
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