Given the following data, calculate the cost of ending inventory using the average cost method. (Round any intermediary and final answers to two decimal places.)
Date Item Unit
1/1 Beginning inventory 30 units at $10 per unit
3/5 Purchase of inventory 40 units at $20 per unit
5/30 Purchase of inventory 15 units at $22 per unit
12/31 Ending inventory 40 units
A) $693.20
B) $672.94
C) $800.00
D) $330.00
B
Explanation: B)
30 units × $10 = $300
40 units × $20 = 800.00
40 units × $22 = 330.00
110 $1430
$1430 ÷ 110 = $13.00; $13.00 × 40 = $520
Business
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