Final answer:
The ending inventory for Fulbright Corp. using the average cost method is $1,209. This was calculated by first determining the total cost of goods purchased ($18,448) and the average cost per unit ($63.61), then multiplying the average cost per unit by the remaining inventory units (19).
Step-by-step explanation:
Ending Inventory Calculation:
To calculate the ending inventory using the average cost method, we need to first determine the total cost of all units purchased and then divide it by the total number of units purchased to get the average cost per unit. Fulbright Corp. made the following purchases: First, add up the total cost of all the purchases: 44 units at $96, 74 units at $76, and 172 units at $50. This gives us a total cost of $4,224. Next, add up the total number of units purchased: 44 + 74 + 172 = 290 units.
Divide the total cost by the total number of units to get the average cost per unit: $4,224/290 = $14.59 (rounded to two decimal places). Adding up these amounts gives us a total cost of $18,448 for all the units. The total number of units purchased is 44 + 74 + 172 = 290 units. The average cost per unit is therefore $18,448 / 290 units = $63.61 per unit. With 19 units remaining in inventory at the end of the year, the value of the ending inventory is 19 units × $63.61 = $1,208.59, which we round to the nearest whole dollar amount to get $1,209.