Use the following data of Stingray Sales Inc Units Total Cos

Use the following data of Stingray Sales, Inc: Units Total Cost $ 7 $ 105 320 Unit Units Cost Sold Beginning inventory Purchase on Apr 25 Purchase on Nov 16 Sales Stingray Sales\' average cost of ending inventory is 40 40 OA. $193 OB. $206 OC. $219 OD. $360

Solution

Average cost/unit=Total cost/Total units

=(105+320+99)/(15+40+11)=$7.939/unit(Approx)

Ending inventory=(15+40+11)-40=26 units

Hence average cost of ending inventory=(26*7.939)

=$206(Approx).