**Inventory Valuation Exercise Using Weighted-Average Cost Method***Ralwins Company had the following balances and transactions during 2018, from January 1 to December 31:*- **Beginning Merchandise Inventory:** 100 units at $83- **March 10:** Sold 50 units- **June 10:** Purchased 200 units at $85- **October 30:** Sold 150 units*Question:*What would be reported for ending Merchandise Inventory on the balance sheet at December 31, 2018, if the perpetual inventory system and the weighted-average inventory costing method are used? (Round unit costs to two decimal places and total costs to the nearest dollar.)**Multiple Choice Options:**A. $8,300 B. $4,150 C. $12,450 D. $8,460**Explanation:**This problem involves calculating the ending inventory using the weighted-average inventory costing method under a perpetual inventory system.1. **Calculate Weighted-Average Cost Per Unit:** - Beginning Inventory: 100 units at $83 = $8,300 - After March 10 Sale: 100 - 50 = 50 units remain - After June 10 Purchase: 50 units + 200 units = 250 units (Total Cost: (50 units x $83) + (200 units x $85) = $4,150 + $17,000 = $21,150) - Weighted-Average Cost = $21,150 / 250 units = $84.60 per unit2. **After October 30 Sale:** - Units sold: 150, so remaining units = 250 - 150 = 100 units - Ending Inventory at Dec 31 = 100 units x $84.60 = $8,460**Answer:** D. $8,460

Ending inventory is the amount of inventory that an entity has in the hand at the end of the period.…

Ralwins Company had the following balances and transactions during 2018, from January 1 to December 31: Beginning Merchandise Inventory 100 units at $83 Sold 50 units March 10 June 10 Purchased 200 units at $85 Sold 150 units October 30 What would be reported for ending Merchandise Inventory on the balance sheet at December 31, 2018 if the perpetual inventory system and the weighted average inventory costing method are used? (Round unit costs to two decimal places and total costs to nearest dollar.) OA. $8,300 OB. $4,150 OC. $12,450 OD. $8,460

Ralwins Company had the following balances and transactions during 2018, from January 1 to December 31: Beginning Merchandise Inventory 100 units at $83 Sold 50 units March 10 June 10 Purchased 200 units at $85 Sold 150 units October 30 What would be reported for ending Merchandise Inventory on the balance sheet at December 31, 2018 if the perpetual inventory system and the weighted average inventory costing method are used? (Round unit costs to two decimal places and total costs to nearest dollar.) OA. $8,300 OB. $4,150 OC. $12,450 OD. $8,460

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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