Question

In its first month of operations, Skysong, Inc. made three purchases of merchandise in the following sequence: (1) 290 units at $4, (2) 390 units at $6, and (3) 490 units at $7. Assuming there are 190 units on hand at the end of the period Your answer is incorrect. Try again. Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Average unit cost . SHOW LIST OF ACCOUNTS LINK TO TEXT INTERACTIVE TUTORIAL XYour answer is incorrect. Try again. Compute the cost of the ending inventory under the average-cost method, assuming there are 190 units on hand. (Round answer to O decimal places, e.g. 125.) The cost of the ending inventory

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Answer #1

1) Average unit cost = [(290 × $4) + (390 × $6) + (490 × $7)] / (290 + 390 + 490) = $6,930 / 1,170 = $5.923

2) Cost of the ending inventory = 190 units × $5.923 = $1,125

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