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Sunny_sXe [5.5K]
3 years ago
14

Inventory records for Dunbar Incorporated revealed the following: Date Transaction Number of Units Unit Cost Apr. 1 Beginning in

ventory 510 $ 2.44 Apr. 20 Purchase 380 2.72 Dunbar sold 590 units of inventory during the month. Ending inventory assuming weighted-average cost would be: (Round weighted-average unit cost to 4 decimal places and final answer to the nearest dollar amount.) Multiple Choice $747. $768. $838. $774.
Business
1 answer:
Alexandra [31]3 years ago
4 0

Answer:

$768

Explanation:

The computation of the ending inventory using weighted average cost is shown below:

But before that average cost per unit is

= (510 × $2.44 + 380 × $2.72) ÷ ($510 + $380)

= ($1,244.40 + $1,033.60) ÷ (890)

= $2.56

Now the ending inventory is

= (890 - 590) × $2.56

= $768

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