Current Attempt in Progress In its first month of operations, Coronado Industries made three purchases of merchandise in the following sequence: (1) 500 units at $6, (2) 600 units at $7, and (3) 700 units at $9. Calculate average unit cost. (Round answer to 3 decimal places, e. g. 5.125.) Average unit cost $enter an average unit cost in dollars eTextbook and Media List of Accounts Compute the cost of the ending inventory under the average-cost method, assuming there are 400 units on hand at the end of the period. (Round answer to 0 decimal places, e. g. 125.) The cost of the ending inventory $enter the cost of the ending inventory in dollars

Question

Kiera

Business

4 May, 01:13

Current Attempt in Progress In its first month of operations, Coronado Industries made three purchases of merchandise in the following sequence: (1) 500 units at $6, (2) 600 units at $7, and (3) 700 units at $9. Calculate average unit cost. (Round answer to 3 decimal places, e. g. 5.125.) Average unit cost $enter an average unit cost in dollars eTextbook and Media List of Accounts Compute the cost of the ending inventory under the average-cost method, assuming there are 400 units on hand at the end of the period. (Round answer to 0 decimal places, e. g. 125.) The cost of the ending inventory $enter the cost of the ending inventory in dollars

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Answers (1)

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Aarav Rodgers · Answer 1

Instructions are listed below

Explanation:

Giving the following information:

Coronado Industries made three purchases of merchandise in the following sequence:

(1) 500 units at $6 = $3,000

(2) 600 units at $7 = $4,200

(3) 700 units at $9 = $6,300

Average cost = total cost / total units = $13,500/1800 = $7.5

Inventory = 400 units*7.5 = $3,000