Use this information to answer the following question.
-A periodic inventory system is used;ending inventory is 150 units.
What is ending inventory under the average-cost method?
A)$900
B)$1,050
C)$1,350
D)$1,200

Question

Use this information to answer the following question.  
-A periodic inventory system is used;ending inventory is 150 units.
What is ending inventory under the average-cost method?
A)$900 
B)$1,050 
C)$1,350 
D)$1,200

Quizplus · Accepted Answer

The average-cost method calculates ending inventory by multiplying the average cost per unit by the number of units. If the average cost per unit is $8, then 150 units x $8 = $1,200.

Use This Information to Answer the Following Question