What is the ending inventory balance at the end of the year rounded to nearest dollar using the average cost method?
A) $1,685
B) $1,575
C) $1,805
D) $3,705

Question

Quizplus · Accepted Answer

Average cost per unit = [($60 × 10 units) + ($65 × 25 units) + ($68 × 30 units) + ($75 × 15 units)] / (10 units + 25 units + 30 units + 15 units) = $67.375
Ending inventory using the average cost method = $67.38 × 25 units = $1,685

What Is the Ending Inventory Balance at the End of the Year