Question

swiftly corporation has the following inventory data

lidl Accounting, se actice Assignment Gradebook ORION Downloadable eTextbook nment : 06:00 PM / Remaining: 90 min. Multiple choice Question 186 Nash's Trading Post, LLC has the following inventory data: July 1 Beginning inventory 26 units at $52 5 Purchases 155 units at $48 14 Sale 103 units 21 Purchases 77 units at $50 30 Sale 72 units Assuming that a perpetual inventory system is used, what is ending inventory (rounded) under the average cost method for July $4158 $4090 $3402 $4134 By accessing this question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Question Attempts: 0 of 1 Earn Maximum Point answer this question

Answer 1

Computation of value of ending inventory as on 30th July
	Goods available for sale			Cost of Goods sold			Ending inventory
Date	Units	Rate per unit	Total (Units* Rates)	Units	Rate per unit	Total (Units* Rates)	Units	Rate per unit	Total (Units* Rates)
1-Jul	26	$                  52	$                          1,352				26	$                  52	$                          1,352
5-Jul	155	$                  48	$                          7,440				26	$                  52	$                          1,352
							155	$                  48	$                          7,440
							181	$            48.57	8792
14-Jul				103	$            48.57	$                    5,003.18	78	$            48.57	$                    3,788.82
21-Jul	77	50	3850				78	$            48.57	$                    3,788.82
							77	$                  50	$                          3,850
							155	$            49.28	$                    7,638.82
30-Jul				72	$            49.28	$                    3,548.35	83	$            49.28	$                    4,090.46
Therefore, the right answer is option B ($ 4090)
Calculation of Average cost as om 5th July 2019: 8792/181 = $ 48.57
Calculation of Average cost as om 5th July 2019: 7638/155 = $ 49.28
Calculation of ending inventory as on 30th July, 2019: 83*49.28 = $4090.46