### Problem StatementIn its first month of operations, Crane Company made three purchases of merchandise in the following sequence:1. 200 units at $62. 300 units at $83. 400 units at $9Crane uses a periodic inventory system.### Part (a1)**Question:**Calculate the weighted-average unit cost. (Round answer to 3 decimal places, e.g., 5.125)**Answer:**- Your answer is correct.- Weighted-average unit cost: \$8.000### Part (a2)**Question:**Compute the cost of the ending inventory under the average-cost method, assuming there are 100 units on hand at the end of the period. (Round answer to 0 decimal places, e.g., 125)**Answer:**- Your answer is incorrect.- Cost of the ending inventory: \$1600**Explanation:**To calculate the weighted-average unit cost, you need to find the total cost of all the units and divide it by the total number of units purchased:1. Total units purchased = 200 + 300 + 400 = 900 units2. Total cost of purchases = (200 * $6) + (300 * $8) + (400 * $9) = $1200 + $2400 + $3600 = $72003. Weighted-average unit cost = Total cost / Total units = $7200 / 900 = $8.000To compute the cost of the ending inventory using the average-cost method, given that there are 100 units on hand:1. Ending inventory cost = Weighted-average unit cost * Number of units on hand2. Ending inventory cost = $8.000 * 100 = $800Note: The correct ending inventory cost should be $800, while the answer provided was $1600, indicating an error in the calculation.

Name: ### Problem StatementIn its first month of operations, Crane Company
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Description: ### Problem StatementIn its first month of operations, Crane Company made three purchases of merchandise in the following sequence:1. 200 units at $62. 300 units at $83. 400 units at $9Crane uses a periodic inventory system.### Part (a1)**Question:*

Inventory analysis is a process of evaluating a company's inventory management practices, assessing…

Business

Accounting

In its first month of operations, Crane Company made three purchases of merchandise in the following sequence: (1) 200 Uhits at $8, (2) 300 units at $8, and (3) 400 units at $9. Crane uses a periodic inventory system. (a1) Your Answer Correct Answer Your answer is correct. Calculate weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average unit cost eTextbook and Media Solution (a2) x Your answer is incorrect. $ Cost of the ending inventory 8 Compute the cost of the ending inventory under the average-cost method, assuming there are 100 units on hand at the end of the period. (Round answer to 0 decimal places, e.g. 125.) $ Attempts: 3 of 3 used 1600

In its first month of operations, Crane Company made three purchases of merchandise in the following sequence: (1) 200 Uhits at $8, (2) 300 units at $8, and (3) 400 units at $9. Crane uses a periodic inventory system. (a1) Your Answer Correct Answer Your answer is correct. Calculate weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average unit cost eTextbook and Media Solution (a2) x Your answer is incorrect. $ Cost of the ending inventory 8 Compute the cost of the ending inventory under the average-cost method, assuming there are 100 units on hand at the end of the period. (Round answer to 0 decimal places, e.g. 125.) $ Attempts: 3 of 3 used 1600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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