Jammer Company uses a weighted average perpetual inventory system that reports the following August 2 purchase 19 units at $16 per unit August 18 purchase 21 units at $15 per unit August 29 sale 38 units August 31 purchase 24 units at $19 per unit what was the per-unit value of ending inventory on August 31

$23.19

Explanation:

The the weighted average perpetual inventory system recalculates a new unit cost whenever a new purchase is made. This unit cost is used to value cost of sales and inventory balance.

Unit Cost  = Total Cost of units available for sale ÷ Total units available for sale

August 18

Unit Cost  = [(19 units x $16) + (21 units x $15)] ÷ 40 units

                 = $15.475

August 31

Unit Cost  = [(2 units x $15.475 ) + (24 units x $19)] ÷ 21 units

                 = $23.1880 or $23.19

therefore,

The per-unit value of ending inventory on August 31 is $23.19.

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