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Jammer Company uses a weighted average perpetual inventory system and reports the following: Date Activities Units Acquired at Cost Units Sold at RetailAugust 2 Purchase 10 units @ $27 = $270  August 18 Purchase 15 units @ $30 = $450  August 29 Sales   20 units soldAugust 31 Purchase 14 units @ $31 = $434   What is the per unit value of ending inventory on August 31? Answers should be rounded to the nearest cent.Multiple Choice$27.00$32.32$28.80$30.42$31.00

Question

Jammer Company uses a weighted average perpetual inventory system and reports the following: Date Activities Units Acquired at Cost Units Sold at RetailAugust 2 Purchase 10 units @ 27=27 = 270  August 18 Purchase 15 units @ 30=30 = 450  August 29 Sales   20 units soldAugust 31 Purchase 14 units @ 31=31 = 434   What is the per unit value of ending inventory on August 31? Answers should be rounded to the nearest cent.Multiple Choice27.0027.0032.3228.8028.8030.42$31.00

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Solution

To calculate the per unit value of ending inventory on August 31, we need to follow these steps:

  1. Calculate the total cost of inventory acquired: 270(fromthe10units@270 (from the 10 units @ 27) + 450(fromthe15units@450 (from the 15 units @ 30) + 434(fromthe14units@434 (from the 14 units @ 31) = $1154

  2. Calculate the total units acquired: 10 units + 15 units + 14 units = 39 units

  3. Calculate the weighted average cost per unit: Total cost of inventory acquired / Total units acquired = 1154/39units=1154 / 39 units = 29.59

  4. Calculate the total cost of units sold: 20 units sold * weighted average cost per unit = 20 units * 29.59=29.59 = 591.80

  5. Calculate the total cost of ending inventory: Total cost of inventory acquired - Total cost of units sold = 1154−1154 - 591.80 = $562.20

  6. Calculate the total units in ending inventory: Total units acquired - Total units sold = 39 units - 20 units = 19 units

  7. Calculate the per unit value of ending inventory: Total cost of ending inventory / Total units in ending inventory = 562.20/19units=562.20 / 19 units = 29.59

So, the per unit value of ending inventory on August 31 is 29.59.However,thisoptionisnotavailableinthemultiplechoicesprovided.Theclosestoptiontothisvalueis29.59. However, this option is not available in the multiple choices provided. The closest option to this value is 30.42.

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