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3 April, 20:29

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 70 units at $ 30.00 per unit

3/5 Purchase of inventory 10 units at $ 10.00 per unit

5/30 Purchase of inventory 15 units at $ 12.00 per unit

12/31 Ending inventory 10 units

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  1. 3 April, 20:31
    0
    using the weighted average method

    average cost per unit = total cost/total units

    begning stock 70*30 = 2100

    purchases 10*10 = 100

    2200/80

    w. average per unit cost = 27.5

    purchases 15*12 = 180

    2200+180=2380 / (100+15)

    w. average per unit cost = 20.70

    there is no purchase after the 5/30 therefore the cost of ending stock under average method will be 20.7 per unit and 20.7*10 = 207 total closing cost.
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