-please show all work thank! In its first month of operations, Giffin Company ma

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-please show all work thank!

In its first month of operations, Giffin Company made three purchases of merchandise in the following sequence: (1) 370 units at $8, (2) 470 units at $10, and (3) 570 units at $11. Assuming there are 270 units on hand at the end of the period. Calculate average unit cost. (Round answers to 3 decimal places, e.g. 5.125. Average unit cost Compute the cost of the ending inventory under the average-cost method, assuming there are 270 units on hand. (Round answers to 0 decimal places, e.g. 125.) The cost of the ending inventory

Explanation / Answer

Solution.

Average unit cost.

Average unit cost. = 13,930 / 1,410 = $9.87

Cost of ending inventory = 270 x $9.87 = $2,664.90.

**Calculation based on weighted average cost of inventory.

Sl. No Unit Purchage Cost per unit Total 1                       370                  8.00                 2,960.00 2                       470                10.00                 4,700.00 3                       570                11.00                 6,270.00 Total                   1,410                29.00               13,930.00

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