Answer:
$1,497.77
Explanation:
From the above information, the following can be deduced;
42 units at $109 per unit
74 units at $82 per unit
170 units at $70
Total units = 42 + 74 + 170 = 286 units
Units left at year end = 19 units
The next step is to compute the total cost in arriving at the ending inventory, using average cost method.
Total cost = [(42 × $109) + (74 × $82) + (170 × $70)]
= $4,578 + $6,068 + $11,900
= $22,546
Per unit cost
= $22,546 ÷ 286 unit
= $78.83 per unit
Therefore, ending inventory
= Per unit cost × Units held at the end of the year
= $78.83 × 19 units
= $1,497.77
