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A company just starting a business purchased three inventory items at the following prices: March 2. $185; March 7. $195; and March 15, $215. If the company sold one unit for $265 on March 10 and one unit for $285 on March 20 and uses the average cost formula in a perpetual inventory system, what is the cost of ending inventory? $285.00 $198.33 $215.00 $202.50

A company just starting a business purchased three inventory items at the following prices: March 2. $185; March 7. $195; and March 15, $215. If the company sold one unit for $265 on March 10 and one unit for $285 on March 20 and uses the average cost formula in a perpetual inventory system, what is the cost of ending inventory? $285.00 $198.33 $215.00 $202.50

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company just starting a business purchased three inventory items at the following prices: March 2. $185; March 7. $195; and March 15, $215. If the company sold one unit for $265 on March 10 and one unit for $285 on March 20 and uses the average cost formula in a perpetual inventory system, what is the cost of ending inventory? $285.00 $198.33. $215.00 $202.50
Transcribed Image Text:A company just starting a business purchased three inventory items at the following prices: March 2. $185; March 7. $195; and March 15, $215. If the company sold one unit for $265 on March 10 and one unit for $285 on March 20 and uses the average cost formula in a perpetual inventory system, what is the cost of ending inventory? $285.00 $198.33. $215.00 $202.50
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