To find the ending inventory cost using the weighted-average inventory costing method, we'll first calculate the weighted average cost per unit and then subtract the cost of goods sold from the total cost of the inventory available for sale.
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Calculate the total cost of purchases:
- For the first purchase (January 31): \[ 100 \text{ units} \times $40/\text{unit} = $4000 \]
- For the second purchase (February 28): \[ 150 \text{ units} \times $35/\text{unit} = $5250 \]
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Total cost of inventory available for sale: \[ \text{Total Cost} = $4000 + $5250 = $9250 \]
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Total units available for sale: \[ \text{Total Units} = 100 + 150 = 250 \text{ units} \]
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Calculate the weighted average cost per unit: \[ \text{Weighted Average Cost per Unit} = \frac{\text{Total Cost}}{\text{Total Units}} = \frac{$9250}{250} = $37.00 \]
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Total units sold:
- The company sold 200 units.
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Calculate the cost of goods sold (COGS): \[ \text{COGS} = \text{Number of Units Sold} \times \text{Weighted Average Cost per Unit} = 200 \times $37.00 = $7400 \]
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Calculate ending inventory:
- Total units remaining: \[ \text{Ending Units} = \text{Total Units} - \text{Units Sold} = 250 - 200 = 50 \text{ units} \]
- Cost of ending inventory: \[ \text{Ending Inventory} = \text{Ending Units} \times \text{Weighted Average Cost per Unit} = 50 \times $37.00 = $1850 \]
Final answer for the cost of ending inventory on December 31: \[ \boxed{1850} \]