Weighted Average Cost Method Facts Vigilant LLC, a newly incorporated company, uses the latest version of a software package (EXODUS) to cost and value its inventory. The software uses the weighted average cost method to value inventory.
The following are the purchases and sales made by Vigilant LLC during 2006 (as a newly set up company, Vigilant LLC has no beginning inventory):
Purchases January 100 units @ $250 per unit
March 150 units @ $300 per unit
September 200 units @ $350 per unit
Sales
March 150 units
December 170 units
Required
Vigilant LLC has approached you to compute the value of its inventory and the cost per unit of the inventory at March 31, 2006, September 30, 2006, and December 31, 2006, under the weighted average cost method.