{"id":195060,"date":"2025-02-25T12:06:25","date_gmt":"2025-02-25T12:06:25","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=195060"},"modified":"2025-02-25T12:06:28","modified_gmt":"2025-02-25T12:06:28","slug":"blossom-company-uses-a-periodic-inventory-system-and-reports-the-following-for-the-month-of-june","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/02\/25\/blossom-company-uses-a-periodic-inventory-system-and-reports-the-following-for-the-month-of-june\/","title":{"rendered":"Blossom Company uses a periodic inventory system and reports the following for the month of June"},"content":{"rendered":"\n

Blossom Company uses a periodic inventory system and reports the following for the month of June.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Calculate weighted-average unit cost.<\/p>\n\n\n\n

Weighted-average unit cost<\/p>\n\n\n\n

The Correct Answer and Explanation is :<\/strong><\/mark><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The weighted-average unit cost<\/strong> is $6.10<\/strong>.<\/p>\n\n\n\n

Explanation:<\/h3>\n\n\n\n

Blossom Company uses a periodic inventory system<\/strong>, which means that inventory is updated at the end of the accounting period rather than after each transaction. The weighted-average method<\/strong> calculates an average cost per unit by dividing the total cost of goods available for sale by the total number of units.<\/p>\n\n\n\n

Step 1: Compute Total Cost<\/strong><\/h4>\n\n\n\n

Given the data:<\/p>\n\n\n\n

    \n
  • June 1 Inventory:<\/strong> 120 units \u00d7 $5 = $600<\/li>\n\n\n\n
  • June 12 Purchase:<\/strong> 390 units \u00d7 $6 = $2,340<\/li>\n\n\n\n
  • June 23 Purchase:<\/strong> 190 units \u00d7 $7 = $1,330<\/li>\n<\/ul>\n\n\n\n

    Total inventory cost = $600 + $2,340 + $1,330 = $4,270<\/strong><\/p>\n\n\n\n

    Step 2: Compute Total Units<\/strong><\/h4>\n\n\n\n

    Total units available for sale:<\/p>\n\n\n\n

      \n
    • 120 + 390 + 190 = 700 units<\/strong><\/li>\n<\/ul>\n\n\n\n

      Step 3: Calculate Weighted-Average Unit Cost<\/strong><\/h4>\n\n\n\n

      [
      \\text{Weighted-Average Unit Cost} = \\frac{\\text{Total Inventory Cost}}{\\text{Total Units Available}}
      ]
      [
      = \\frac{4,270}{700} = 6.10
      ]<\/p>\n\n\n\n

      Thus, the weighted-average unit cost is $6.10 per unit<\/strong>.<\/p>\n\n\n\n

      This method smooths out price fluctuations and simplifies inventory valuation. It is particularly useful when inventory turnover is high, and it avoids the complexity of tracking specific unit costs.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Blossom Company uses a periodic inventory system and reports the following for the month of June. Calculate weighted-average unit cost. Weighted-average unit cost The Correct Answer and Explanation is : The weighted-average unit cost is $6.10. Explanation: Blossom Company uses a periodic inventory system, which means that inventory is updated at the end of the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-195060","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/195060","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=195060"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/195060\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=195060"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=195060"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=195060"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}