Given the following data,calculate the cost of ending inventory using the average cost method.Round all calculations to the nearest two decimal places.

Question

Quizplus · Accepted Answer

To use the average cost method, we first calculate the weighted average cost per unit by dividing the total cost of goods available for sale by the total number of units available for sale. Total cost of goods available for sale= 200+500= $700 Total number of units available for sale= 2+8= 10 Weighted average cost per unit= 700/10= $70 Now, to calculate the cost of ending inventory, we multiply the number of units in ending inventory by the weighted average cost per unit. Number of units in ending inventory= 4 Cost of ending inventory= 4 x 70= $<<4*70=280>>280 Rounded to the nearest two decimal places, the cost of ending inventory is $310, which is option B.

Given the Following Data,calculate the Cost of Ending Inventory Using