Question A company just starting business made the following four inventory purc

Question

Question A company just starting business made the following four inventory purchases in June: {June 1st: 150 units for $780} {June 10th: 200 units for $1,170}{June 15th: 200 units for $1,260}{June 28th: 150 units for $990}. The total of all of these purchases is $4,200. A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average cost method, the amount allocated to the ending inventory on June 30 is

*Answer (check the box to indicate the correct response)
A. $1,170.
B. $1,320.
C. $1,260.
D. $1,200.

Explanation / Answer

D $1,200 700 units were purchased for a total cost of $4,200, so the average cost is $4,200/7=$6.00. 200 units are left in inventory so the total inventory value is 200*$6.00= $1,200.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.