Question

A company just began business and made the following four inventory purchases in June: June 1 290 units $1740 June 10 340 units 2016 June 15 340 units 2142 June 28 290 units 1914 $7812 A physical count of merchandise inventory on June 30 reveals that there are 370 units on hand. Using the average-cost method, the amount allocated to the ending inventory (rounded to whole dollar) on June 30 is

Answer 1

Answer:

Inventory= $2,294

Explanation:

Giving the following information:

June 1 290 units $1740

June 10 340 units 2016

June 15 340 units 2142

June 28 290 units 1914

Total= $7812

A physical count of merchandise inventory on June 30 reveals that there are 370 units on hand.

First, we need to calculate the unitary value:

Unitary cost= 7812/1260 units= $6.2

Inventory= 370*6.2= $2,294