Use the following inventory information for the month of July to answer questions :
A physical count of inventory on July 30 reveals that there are 35 units on hand.
-Using the average cost method, the value of ending inventory is:
A) $700.
B) $711.67.
C) $1,300.
D) $1,321.67.

Question

Use the following inventory information for the month of July to answer questions :
  A physical count of inventory on July 30 reveals that there are 35 units on hand.
-Using the average cost method, the value of ending inventory is:
A) $700. 
B) $711.67. 
C) $1,300. 
D) $1,321.67.

Quizplus · Accepted Answer

The weighted average unit cost is $2,000/100 units = $20 per unit. $20 x 35 units = $700.

Use the Following Inventory Information for the Month of July