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Chess Top uses the periodic inventory system. For the current month, the beginning inventory consisted of...

Chess Top uses the periodic inventory system. For the current month, the beginning inventory

consisted of 480 units that cost $65 each. During the month, the company made two purchases:

720 un

its at $68 each and 360 units at $70 each. Chess Top also sold 1,200 units during the

month. Using the average cost method, what is the amount of ending inventory

(round to the

nearest dollar)

business   accounting   
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Answer #1

Ending Inventory = 480+720+360 - 1200 = 360 units

Weighted Average Cost per unit = (480*65+720*68+360*70)/(480+720+360) = $67.54 per unit

Ending inventory = 360*67.54 = $24,314

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