contestada

The following units of an inventory item were available for sale during the year: Beginning inventory 8 units at $49 First purchase 15 units at $51 Second purchase 27 units at $53 Third purchase 14 units at $55 The firm uses the periodic inventory system. During the year, 26 units of the item were sold. The value of ending inventory rounded to the nearest dollar using average cost is (Round average cost per unit to three decimal place.)

Respuesta :

Answer:

$1,994

Explanation:

The computation of the ending inventory is shown below:

But before that the average cost is

= Total amount of purchased ÷ total units available

= (8  units × $49 +  15 units × $51 + 27 units × $53 + 14 units × $55) ÷ (8 units + 15 units + 27 units + 14 units)

= ($392 + $765 + $1,431 + $770) ÷ (64 units)

= $52.469

Now the ending inventory units is

= 64 units - 26 units

= 38 units

So, the ending inventory is

= 38 units × $52.469

= $1,994

Otras preguntas