The units of an item available for sale during the year were as follows: Jan 1 Inventory 10 units at 129 April 15 Purchase 134 units at 116 September 9 Purchase 28 units at 127 There are 33 units of the item in the physical inventory at December 31

Accounting Feb 15, 2021

The units of an item available for sale during the year were as follows:

Jan 1 Inventory 10 units at 129 April 15 Purchase 134 units at 116 September 9 Purchase 28 units at 127

There are 33 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the average cost method. (Round to nearest whole dollar)

Expert Solution

Computation of Ending Inventory Cost:
January	1	Inventory	10	@	$129	$1,290
April	15	Purchase	134	@	$116	$15,544 &..>@	$127.00	$3,556
Total			172			$20,390
Average cost = $20,390/172 =			$118.55
*Ending inventory cost = 33118.55 =**						$3,912.03

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