Answer:
Using the average cost method, the value of ending inventory is $2,200
Explanation:
Ayayai Corp. uses average cost method. The company counts merchandise inventory on July 30 (the company uses periodic inventory system).
Average cost = Total Cost of Inventory /Total Units in Inventory
1. Beginning inventory: 66 units at $19, total cost $1,254
2. 7 July, Purchases: 231 units at $20, total cost $4,620
3. 22 July, Purchases purchase: 33 units at $22, total cost $726
Total purchase in the period: 264 units, total cost $5,346
Average cost = ($1,254 + $5,346
)/(66 + 264) = $6,600/330 = $20 per unit
On July 30, there are 110 units on hand
The value of ending inventory = 110 x $20 = $2,200
