A company just starting business made the following four inventory purchases in June: Date Number of units purchased Total cost

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A company just starting business made the following four inventory purchases in June: Date Number of units purchased Total cost

June 1 120 units $ 420 June 10 150 units 600 June 15 150 units 570 June 28 200 units 270 $1860 A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is

Business

1 answer:

borishaifa [10] · Answer 1 · 2023-08-03T19:20:15+03:00

The cost of ending inventory is $630.

<h3>What is the value of ending inventory?
</h3>

The average inventory method entails using the average cost of the total inventory purchased to determine the value of the ending inventory.

Average cost = total cost / total units purchased

1860 / (120 + 150 + 150 + 200) = $3

Cost of ending inventory = 210 x 3 = $630

To learn more about how to calculate cost, please check: brainly.com/question/25717996

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