Use the following information for questions 103 through 106.
Transactions for the month of June were:
-Assuming that perpetual inventory records are kept in units only, the ending inventory on an average-cost basis, rounded to the nearest dollar, is
A) $8,192.
B) $8,476.
C) $8,580.
D) $8,644.

Question

Use the following information for questions 103 through 106.
Transactions for the month of June were: 
-Assuming that perpetual inventory records are kept in units only, the ending inventory on an average-cost basis, rounded to the nearest dollar, is
A) $8,192. 
B) $8,476. 
C) $8,580. 
D) $8,644.

Quizplus · Accepted Answer

The average-cost method calculates the cost of ending inventory by taking the total cost of goods available for sale and dividing it by the total units available for sale. The resulting average cost per unit is then multiplied by the number of units in ending inventory to determine the ending inventory value.

Use the Following Information for Questions 103 Through 106