contestada

The following lots of a particular commodity were available for sale during the year:

Beginning inventory 10 units at $52
First purchase 16 units at $54
Second purchase 26 units at $24
Third purchase 18 units at $60

The firm uses the periodic system, and there are 22 units of the commodity on hand at the end of the year.

What is the ending inventory balance at the end of the year rounded to nearest dollar according to the average cost method? Do not round intermediate calculations.

a. $1,168

b. $1,176

c. $1,144

d. $971

Respuesta :

amanarsalan

Answer:

d. $971

Explanation:

Periodic Inventory

Average Cost Method

10 units x $52 = $520

16 units x $54 = $864

26 units x $24 = $624

18 units x $60 = $1,080

Total Units = 10 units + 16 units + 26 units + 18 units

Total units = 70 units

Total Cost = $520 + $864 + $624 + $1,080

Total Cost = $3,088

Average Cost = Total Cost / Total Units

Average Cost = $3,088 / 70 units

Average Cost = $44.1 per unit

Ending Inventory Balance:

22 units x $44.1 per unit = $971

Otras preguntas