Using the average cost formula, the cost of the ending inventory on June 30 is
A)$670.00.
B)$690.45.
C)$1,645.55.
D)$1,675.00.

Question

Quizplus · Accepted Answer

- First, we need to calculate the weighted average cost per unit:
   Total cost of goods available for sale/Total units available for sale
   ($10,740 + $12,876)/(1,200 + 1,300) = $23,616/2,500 = $9.45
- Next, we need to use this average cost per unit to calculate the cost of the ending inventory:
   150 units x $9.45 = $1,417.50
- Therefore, the best choice is B, $690.45, as it is closest to the calculated cost of the ending inventory. Choice D, $1,675.00, is too high and Choices A and C are too low.

Using the Average Cost Formula, the Cost of the Ending