Mel Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Total Cost $4 $400 $5 $2,000 $7 $1,400 $8 $2,400 1/1 Beginning inventory 1/20 Purchase 7/25 Purchase 10/2 Purchase 0 Total 100 400 200 300 1,000 $6,200 A physical count of inventory on 12/31 revealed there were 300 units on hand (meaning 700 were sold). Assume the company uses the average cost method. The dollar amount assigned to Ending Inventory is O $1,860. O $2,480. $1,800. $4,340.
Mel Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Total Cost $4 $400 $5 $2,000 $7 $1,400 $8 $2,400 1/1 Beginning inventory 1/20 Purchase 7/25 Purchase 10/2 Purchase 0 Total 100 400 200 300 1,000 $6,200 A physical count of inventory on 12/31 revealed there were 300 units on hand (meaning 700 were sold). Assume the company uses the average cost method. The dollar amount assigned to Ending Inventory is O $1,860. O $2,480. $1,800. $4,340.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Mel Company uses the periodic inventory method and had the following inventory information available:
Units Unit Cost Total Cost
$4
$400
$5 $2,000
$7 $1,400
$8
$2,400
1/1
Beginning
inventory
1/20 Purchase
7/25 Purchase
10/2
Purchase
0
Total
100
400
200
300
1,000
$6,200
A physical count of inventory on 12/31 revealed there were 300 units on hand (meaning 700 were sold). Assume the company uses the average cost method. The dollar amount
assigned to Ending Inventory is
O $1,860.
$2,480.
$1,800.
$4,340.
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