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tice Assignment Gradebook ORION Downloadable eTextbook ment FULL SCREEN BACK NEX

ID: 2555525 • Letter: T

Question

tice Assignment Gradebook ORION Downloadable eTextbook ment FULL SCREEN BACK NEX Brief Exercise 6-4 n its first month of operations, Bethke Company made three purchases of merchandise in the following sequence: (1) 135 units at $6, (2) 420 units at $7, and (3) 140 units at $8. Calculate the average unit cost. (Round answer to 2 decimal places, e.g. 15.25.) Average unit cost Compute the cost of the ending inventory under the average-cost method, assuming there are 280 units on hand. (Round answer to 0 decimal places, e.g. 1,250.) The cost of the ending inventory s Question Attempts: 0 of 1 used SAVE FOR LATERUBMIT ANSWER Version 4.24.5.1 vacy Policy 2000-2018 John All Rights Reserved. A Division of John Wiley & Sons Ins dd 3/28/2018 to search

Explanation / Answer

Solution:

Average unit cost = 7.01

Cost of Ending inventory = 1962

Working:

Units

Price per unit

135

6

810

420

7

2940

140

8

1120

695

4,870

Average unit cost = 4870 / 695 = 7.01

Cost of Ending inventory = 280 units * 7.01 = 1962

Units

Price per unit

135

6

810

420

7

2940

140

8

1120

695

4,870