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Inventory records for Dunbar Incorporated revealed the following: Date Transaction Number of Units Unit Cost Apr....

Inventory records for Dunbar Incorporated revealed the following: Date Transaction Number of Units Unit Cost Apr. 1 Beginning inventory 500 $ 2.35 Apr. 20 Purchase 350 2.62 Dunbar sold 560 units of inventory during the month. Ending inventory assuming weighted-average cost would be:

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Answer #1

Average cost = [(500 units × $2.35) + (350 units × $2.62)] / (500 units + 350 units)

Average cost = $2.46 (rounded)

Ending inventory = $2.46 × 560 units

Ending inventory = $1,378 (rounded)

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