Kimmel Financial Accounting 7e Intro to Accounting for tionM

Kimmel, Financial Accounting, 7e Intro to Accounting for tion-Majors 7e (ACC Assignment Gradebook ORION nent Brief Exercise 6-3 In its first month of operations, Giffin Company made three purchases of merchandise in the are 150 units on hand at the end of the period. folowing sequence: (1) 250 units at $7, (2) 350 units at $9, and (3) 450 units at $10. Assuming ther Calculate average unit cost.(Round answers to 3 decimal places, e-g. 5.125.) Average unit cost LTNK TO TEXT Compute the cost of the ending inventory under the average-cost method, assuming there are 150 units on hand. (Round answers to O decimal places, a.g. 125.) The cost of the ending inventorys LIST OF ACCOUNTS LINK TO TXT Question Attempts: 0 of 3 used SAVE FO LATER SUBMIT ANSWER Rights Reserved. A Divwan ef atnyult.ASanainc. MacBook Air

Solution

Average unit cost = $9400 / 1050 Units = 8.952 Per unit

The cost of the ending inventory under the average cost method, assuming there are 150 Units on hand

Answer= 150 Units * $8.952 Per Unit

= $ 1343

	Units	Price	Total
1	250 Units	$7	$ 1750
2	350 Units	$9	$ 3150
3	450 Units	$10	$ 4500
Total	1050		$ 9400