Question

In its first month of operations, Blue Spruce Corp. made three purchases of merchandise in the following sequence: (1) 350 units at $3, (2) 400 units at $5, and (3) 500 units at $7.

Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Average unit cost $enter an average unit cost in dollars

Compute the cost of the ending inventory under the average-cost method, assuming there are 250 units on hand at the end of the period. (Round answer to 0 decimal places, e.g. 125.)

The cost of the ending inventory

$enter the cost of the ending inventory in dollars

Answer 1

Inventory Balance Periodic : Average Cost Goods Purchasd Cost of Goods Sold cost of Goods Cost Per Available for # of Units Cost Per Cost of # of Units Unit sales sold Unit Goods Sold 1 350 3.00 1050 Cost Per Ending Unit Inventory # of Units 2 3. 400 5.00 500 7.00 1250[ 5.2400 2000 3500 6550 Totals 1000 5.24 5240 250 5.2400 1 310 Average cost Per unit = 28870/375 Cost of ending inveotry 5.240 1310