The following amounts and costs of platters were available for sale by Cari's Ceramics during 2016:
Cari's Ceramics has 60 platters on hand at the end of the year.
What is the dollar amount of inventory at the end of the year according to the average cost method?
A) $14,880
B) $ 6,200
C) $11,500
D) $ 9,720

Question

The following amounts and costs of platters were available for sale by Cari's Ceramics during 2016:
 Cari's Ceramics has 60 platters on hand at the end of the year.
What is the dollar amount of inventory at the end of the year according to the average cost method?
A) $14,880 
B) $ 6,200 
C) $11,500 
D) $ 9,720

Quizplus · Accepted Answer

(10 units × $164) + (15 units × $220) + (30 units × $280) + (25 units × $260) = $19,840
$19,840 / 80 units = $248.00
60 units × $248124 = $14,880

The Following Amounts and Costs of Platters Were Available for Sale