Question

Use the following information for questions 5 to 11 Company A uses the periodic inventory system. The beginning inventory consisted of 360 units that cost $65 each. During the month of February, the company made two purchases: on February 15, they bought 540 units at $68 each; on February 25, they bought 270 units at $70 each. Company A also sold 900 units during the month. How many units are in the ending inventory?

A. 1,170 units
B. 270 units
C. 360 units
D. 900 units

Answer 1

B. 270 units

Step-by-step explanation:

First , add up all the units

= 360 units + 540 units + 270 units

= 1,170 units

The next step is to deduct the additional units sold from the total units

= 1,170 units - 900 units

= 270 units

Therefore, the number units in the ending inventory is 270.