Question

Current Attempt in Progress In its first month of operations, Coronado Industries made three purchases of merchandise in the following sequence: (1) 500 units at $6, (2) 600 units at $7, and (3) 700 units at $9. Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Average unit cost $enter an average unit cost in dollars eTextbook and Media List of Accounts Compute the cost of the ending inventory under the average-cost method, assuming there are 400 units on hand at the end of the period. (Round answer to 0 decimal places, e.g. 125.) The cost of the ending inventory $enter the cost of the ending inventory in dollars

Answer 1

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Coronado Industries made three purchases of merchandise in the following sequence:

(1) 500 units at $6= $3,000

(2) 600 units at $7= $4,200

(3) 700 units at $9= $6,300

Average cost= total cost/ total units= $13,500/1800= $7.5

Inventory= 400 units*7.5= $3,000