RJ Corporation has provided the following information about one of its inventory items: $\begin{array}{clrr}\text { Date }&\text { Transaction } &\text { Number of Units }&\text { Cost per Unit }\\hline
1 / 1 & \text { Beginning Inventory } & 400 & \$ 3,200 \
6 / 6 & \text { Purchase } & 800 & \$ 3,600 \
9 / 10 & \text { Purchase } & 1,200 & \$ 4,000 \
11 / 15 & \text { Purchase } & 800 & \$ 4,200
\end{array}$ During the year, RJ sold 3,000 units. What was ending inventory using the average cost flow assumption under a periodic inventory system?
A) $640,000.
B) $840,000.
C)$770,000.
D)$880,000.

Question

Quizplus · Accepted Answer

To find the ending inventory using the average cost method, first calculate the total cost and total units available: Total cost = (400 * 3200) + (800 * 3600) + (1200 * 4000) + (800 * 4200) = $12,800 + $28,800 + $48,000 + $33,600 = $123,200. Total units = 400 + 800 + 1200 + 800 = 3200 units. Average cost per unit = $123,200 / 3200 = $38.5. Ending inventory = (3200 - 3000) units * $38.5 = 200 * $38.5 = $7700.

RJ Corporation Has Provided the Following Information About One of Its