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Nataliya [291]
4 years ago
11

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases

(listed in chronological order of acquisition): 41 units at $106 per unit 73 units at $89 per unit 175 units at $52 per unit Sales for the year totaled 267 units, leaving 22 units on hand at the end of the year. Ending inventory using the average cost method is: ____ (Do not round unit cost calculation. Round your final answer to the nearest whole dollar amount.)
Business
1 answer:
antoniya [11.8K]4 years ago
4 0

Answer:

$1,518.15

Explanation:

The company uses the average cost method and the periodic inventory system. Weighted average cost per unit is calculated by the following formula:

Weighted Average Unit Cost =Total Cost of Inventory /Total Units in Inventory

Total Cost of Inventory in the first year:

                Unit Unit cost      Total

                   41   $106       $4,346  

                   73   $89        $6,497  

                   175   $52        $9,100  

Total           289              $19,943  

Weighted Average Unit Cost = $19,943/289

Cost of goods sold = ($19,943/289) x 267 = $18,424.85

Ending inventory = ($19,943/289) x 22 = $1,518.15

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Explanation:

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2) The output of a company is computed within the GDP. Even if the output is not sold after production but it is recorded as part of an organization's inventory, it will be considered in the calculation of the GDP of the year when the production of the good took place.

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Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization sch
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3 years ago
If a donut shop sells a dozen donuts for $6.00, what would the cost of 9 donuts be at the same rate?
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