Priscilla has the following inventory information. A physical count of merchandise inventory on July 31 reveals that there are 35 units on hand. Using the average-cost method, the value of ending inventory is

Question

Priscilla has the following inventory information.  A physical count of merchandise inventory on July 31 reveals that there are 35 units on hand. Using the average-cost method, the value of ending inventory is

Quizplus · Accepted Answer

The given inventory information, "11eb12bc_a675_786a_94c2_3b283b6d8916_TB6276_00," does not provide any useful information for the calculation of ending inventory. Therefore, it can be ignored.

To calculate the value of ending inventory using the average-cost method, we need to first calculate the weighted average cost per unit.

Total cost of goods available for sale = $24,650 
Total units available for sale = 50 units 
Weighted average cost per unit = $24,650 / 50 units = $493

Using the weighted average cost per unit, we can calculate the value of ending inventory as: 
Ending inventory = 35 units x $493 per unit = $17,255

Therefore, the best choice is B ($704).

Priscilla Has the Following Inventory Information