Brief Exercise 6-4 In its first month of operations, Whispering Winds Corp, made

Question

Brief Exercise 6-4 In its first month of operations, Whispering Winds Corp, made three purchases of merchandise in the following se and (3) 140 units at $8. quence: (1) 135 units at $6, (2) 420 units at $7, Calculate the average unit cost. (Round answer to 2 decimal places, e.g. 1s.25.) Average unit cost tudv Compute the cost of the ending inventory under the average-cost method, assuming there are 280 units on hand. (Round answer to o decimal places, e.g 1,250.) The cost of the ending inventory s

Explanation / Answer

Units available for sale = (135+420+140) = 695 units

Cost of units available for sale = (135*6+420*7+140*8) = 4870

a) Average cost per unit = 4870/695 = 7.00

b) Cost of ending inventory = 7*280 = 1960

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.