A company just starting business made the following four inventory purchases in June: A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is
A) $2,100.
B) $1,500.
C) $575.
D) $600.

Question

A company just starting business made the following four inventory purchases in June:  A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is
A) $2,100. 
B) $1,500. 
C) $575. 
D) $600.

Quizplus · Accepted Answer

The Answer of A company just starting business made the following four inventory purchases in June:  A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is
A) $2,100. 
B) $1,500. 
C) $575. 
D) $600.

A Company Just Starting Business Made the Following Four Inventory