Question

Inventory records for Dunbar Incorporated revealed the following:Date Transaction Numberof Units UnitCost Apr. 1 Beginning inventory 550 $2.33 Apr. 20 Purchase 310 2.68 Dunbar sold 560 units of inventory during the month. Ending inventory assuming weighted-average cost would be (Do not round your intermediate calculations. Round weighted-average unit cost to four decimals if necessary. Round your answer to the nearest dollar amount):a. $737.b. $694.c. $817.d. $752.

Answer 1

Ending inventory assuming weighted-average cost would be $737

Step-by-step explanation:

According to the given data we have the following:

Date Transaction Number of Units Unit Cost Total

Apr. 1 Beginning inventory 550 2.33 $1,281.5

Apr. 20 Purchase 310 2.68 $830.8

Total 860 $2,112.3

Therefore, Weighted avearge cost = $2,112.3/860= $2.4562

Ending inventory units = 860-560 = 300

Therefore, Ending inventory assuming weighted-average cost=300*2.4562=$737

Ending inventory assuming weighted-average cost would be $737