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Two items are purchased: 100 packs of felt pens at $4.00 each and 60 packs of felt pens at $3.80 each. (A pack contains 3 felt pens). Find the ending inventory if 50 packs were on hand at the end of the period in dollars.

User Seif
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1 Answer

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Answer + step-by-step explanation:

First, let's find the total cost of the items purchased:

100 packs of felt pens at $4.00 each = 100 x $4.00 = $400.00

60 packs of felt pens at $3.80 each = 60 x $3.80 = $228.00

The total cost of the items purchased is $400.00 + $228.00 = $628.00.

Next, let's find the total number of felt pens purchased:

100 packs x 3 felt pens per pack = 300 felt pens

60 packs x 3 felt pens per pack = 180 felt pens

The total number of felt pens purchased is 300 + 180 = 480 felt pens.

If 50 packs of felt pens were on hand at the end of the period, that means there were 50 x 3 = 150 felt pens left in inventory.

To find the ending inventory value, we need to multiply the number of felt pens left in inventory by the cost per felt pen:

$628.00 / 480 felt pens = $1.31 per felt pen

150 felt pens x $1.31 per felt pen = $196.50

Therefore, the ending inventory value of the 50 packs of felt pens left on hand is $196.50.

User SoManyGoblins
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