A corporation has provided the following information about one of their products:

$$\begin{array}{ll}
\begin{array} { ll }
\text { Date } & \text { Transaction } \
1 / 1 & \text { Beginning Inventory } \
6 / 5 & \text { Purchase } \
11 / 10 & \text { Purchase } \

\end{array}
\begin{array} { l l}
\text { Number of Units } & \text { Cost per Unit } \
200& \$ 140 \
400 & \$ 160 \
100 & \$ 200 \

\end{array}
\end{array}$$
During the year,400 units were sold. What is ending inventory using the average cost method?
A)$48,000
B)$64,000
C)$50,000
D)$62,000

Question

A corporation has provided the following information about one of their products:

$$\begin{array}{ll}
\begin{array} { ll } 
\text { Date } & \text { Transaction } \
1 / 1 & \text { Beginning Inventory } \
6 / 5 & \text { Purchase } \
11 / 10 & \text { Purchase } \

\end{array}
\begin{array} { l l} 
\text { Number of Units } & \text { Cost per Unit } \
200& \$ 140 \
400 & \$ 160 \
100 & \$ 200 \

\end{array}
\end{array}$$
 During the year,400 units were sold. What is ending inventory using the average cost method?
A)$48,000
B)$64,000
C)$50,000
D)$62,000

Quizplus · Accepted Answer

Average cost per unit = (200 * $140 + 400 * $160 + 100 * $200) / (200 + 400 + 100) = $160Ending inventory = 100 units * $160 = $16,000

A Corporation Has Provided the Following Information About One of Their