Over time, technological advance increases consumers' incomes and reduces the price of smartphones. Each of these forces increas
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Answer:
$1263
Explanation:
Given: Beginning inventory 10 units at $55
First purchase 25 units at $60
Second purchase 30 units at $65
Third purchase 15 units at $70.
First, finding Total cost of available inventory to know weighted average cost.
Total cost=
∴ Beginning inventory=
First purchase=
Second purchase=
Third purchase = .
Total units available for sale=
Total cost of available inventory=
Now, finding Weighted average cost.
Weighted average cost=
Weighted average cost=
∴ Weighted average cost= $ 63.125.
As given, 60 units sold during the year, which mean 20 units is still remaining out of total 80 units.
The value of ending inventory=
∴ The value of ending inventory=
∴ The value of ending inventory using average cost is $1263