Chess Top uses the periodic inventory system.For the current month, the beginning inventory consisted of 200 units that cost $65 each.During the month, the company made two purchases: 300 units at $68 each and 150 units at $70 each.Chess Top also sold 500 units during the month.Using the average cost method, what is the amount of ending inventory?

Question

Quizplus · Accepted Answer

The average cost per unit is calculated as [(200 units * $65) + (300 units * $68) + (150 units * $70)] / 650 units = $67.54. The ending inventory is 150 units (650 total units - 500 units sold) at $67.54 each, totaling $10,131.

Chess Top Uses the Periodic Inventory System