Home and Hearth, which uses the average cost method of valuing inventory, has 35 fire screens remaining in inventory. Home and Hearth purchased fire screens over a 12-month period as follows: 36 purchased at $140 on January 4, 18 purchased at $145 on April 2, 18 purchased at $150 on July 30, and 36 purchased at $148 on September 1. Compute the value of the ending inventory of fire screens at average cost.

Question

Home and Hearth, which uses the average cost method of valuing inventory, has 35 fire screens remaining in inventory. Home and Hearth purchased fire screens over a 12-month period as follows: 36 purchased at $140 on January 4, 18 purchased at $145 on April 2, 18 purchased at $150 on July 30, and 36 purchased at $148 on September 1. Compute the value of the ending inventory of fire screens at average cost.​

Quizplus · Accepted Answer

The Answer of Home and Hearth, which uses the average cost method of valuing inventory, has 35 fire screens remaining in inventory. Home and Hearth purchased fire screens over a 12-month period as follows: 36 purchased at $140 on January 4, 18 purchased at $145 on April 2, 18 purchased at $150 on July 30, and 36 purchased at $148 on September 1. Compute the value of the ending inventory of fire screens at average cost.​

Home and Hearth, Which Uses the Average Cost Method of Valuing