Consider the following facts Company A begin business operations in the month of

Question

Consider the following facts Company A begin business operations in the month of April. On April 1, it purchased 150 units of goods for $390. On April 10, it purchased 200 units of goods for $585. On April 15, it purchased 200 units of goods for $630. On April 28, it purchased 150 units of goods for $510. At the end of the month, it discovered that it had 200 units on hand after completing its physical inventory count. Company A uses the average-cost inventory accounting method. Company A's ending inventory for April is:

Explanation / Answer

Date Units Total Per Unit Apr-01 150 390 2.6 Apr-10 200 585 150@390 975/350 2.785714 200@585 Apr-15 200 630 150@390 1605/550 2.918182 200@585 200@630 Apr-28 150 510 150@390 2115/700 3.021429 200@585 200@630 150@510 Cvalue of ending Inventory = 200@3.021429 604.2858 Value of ending inventory at the end of April is $ 605 approximately

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