Ronald, Inc. had the following balances and transactions during 2017: What is the amount of the company's Merchandise Inventory, as disclosed in the December 31, 2017 balance sheet, using the periodic weighted-average inventory costing method

$707

Explanation:

Using the Periodic System means that inventory is updated per period. This means that using the Weighted Average method, Ending Inventory prices will be calculated on the basis of all inventory in the period.

Weighted Average Method aims to ascribe a single price to all the inventory units sold by a company and so divides the entire cost by the number of units.

Number of Units bought in 2017,

Opening Balance = 12 units

June 10 = 24 units.

= 12 + 24

= 36 units.

Cost of the the 36 units

= (12 * 91) + (24 * 87)

= $3,180

Weighted Average Cost,

= 3,180/36

= $88.33

During the year they sold 28 units (10 + 18) meaning that 8 units (36 - 28) were left.

The closing Inventory on the 12/31/2020 therefore is,

= 8 * 88.33

= $706.66

= $707