Martin Inc. is a wholesaler of office supplies. The activity for supply number 47519 during October is shown below:

-Refer to Exhibit 7-6. If Martin Inc. uses a periodic average cost inventory system, the ending inventory of supply number 47519 at October 31 is reported as (round the average cost to the nearest cent)

Question

Martin Inc. is a wholesaler of office supplies. The activity for supply number 47519 during October is shown below:
 
-Refer to Exhibit 7-6. If Martin Inc. uses a periodic average cost inventory system, the ending inventory of supply number 47519 at October 31 is reported as (round the average cost to the nearest cent)

Quizplus · Accepted Answer

To calculate the ending inventory using periodic average cost method, first we need to calculate the cost per unit:
Total cost of goods available for sale / Total units available for sale = Cost per unit
($1,697,600 + $16,800) / (31,200 + 1,000) = $54.24

Then, we can calculate the ending inventory:
Ending inventory = Units on hand × Cost per unit
(2,780 + 1,920) × $54.24 = $150,080

Therefore, the best choice is C.