The annual inventory of BestValue Inc shows the following in

The annual inventory of Best-Value, Inc. shows the following information for DVD players: If a total of 345 DVD players were sold during the year, what is the value of the ending inventory using the average cost method of inventory pricing? (Note: Round the average cost to 2 decimal places.)

Solution

Average cost per unit = 420500/1150 = 365.65 per unit

Total units available for sale = 1150 Units

Sale unit = 345 Unit

Ending inventory unit = 1150-345 = 805 Units

Value of ending inventory under average cost method = 805*365.65 = $294348.25 or $294348