Reference no: EM132730854

A company, at the beginning of its January 1 fiscal year, reported a beginning inventory of 500 units at a cost of $ 200 per unit. Over the first quarter, the company made the following purchases:

January 10 purchase of 200 units at a cost of $130 = $26,000

February 7 purchase of 300 units at a cost of $150 = $45,000

March 5 purchase of 250 units at a cost of $200 = $50,000

In addition, the company made the following sales:

End of February sales of 200 units
End of March sales of 150 units

Required:

Problem i) Under the periodic inventory system compute the Weighted Average Cost (WAC) at the end of the first quarter: and the allocation to the cost of goods sold and ending inventory

Problem ii) Determine the Weighted Average Cost (WAC) prior to the sales of 200 Units in February