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3 years ago

Freehan Company’s accounting records has the following information about its inventory:

Business

1 answer:

stealth61 [152]3 years ago

8 0

Answer:

The answer is: $93,150

Explanation:

We can use the following formula to calculate the ending inventory under the average cost method:

ending inventory = average cost per unit x number of units in inventory

First we must determine the average cost per unit:

= [(8,000 x $8) + (17,000 x $10) + (15,000 x $12)] / (8,000 + 17,000 + 15,000)

= ($64,000 + $170,000 + $180,000) / 40,000 units = $414,000 / 40,000

= $10.35 per unit

Then we calculate the value of the ending inventory:

ending inventory = $10.35 per unit x 9,000 units = $93,150

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3 years ago

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Answer:

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Flex Co. uses a periodic inventory system. The following are inventory transactions for the month of January: 1/1 Beginning inve

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Answer:

The total cost of goods sold = $37,500

Explanation:

Given:

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Purchase inventory = 5,000 units at $4

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