The following information is available for Pintus Company: Item Units Unit cost Total Beginning inventory 400 $4 $1,600 First purchase 720 3,600 Second purchase 880 7 6,160 2,000 $11,360 Assume that Pintus uses a periodic inventory system and that there are 820 units left at the end of the month. Required: Assuming that the Company is using the Average-cost method: 1- Compute the average cost per unit. 2- Compute the cost of ending inventory.
The following information is available for Pintus Company: Item Units Unit cost Total Beginning inventory 400 $4 $1,600 First purchase 720 3,600 Second purchase 880 7 6,160 2,000 $11,360 Assume that Pintus uses a periodic inventory system and that there are 820 units left at the end of the month. Required: Assuming that the Company is using the Average-cost method: 1- Compute the average cost per unit. 2- Compute the cost of ending inventory.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![The following information is available for Pintus Company:
Item
Units
Unit cost
Total
Beginning inventory 400
$4
$1,600
First purchase
720
3,600
Second purchase
880
6,160
2,000
$11,360
Assume that Pintus uses a periodic inventory system and that there are 820
units left at the end of the month.
Required:
Assuming that the Company is using the Average-cost method:
1- Compute the average cost per unit.
2- Compute the cost of ending inventory.
5 7](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58f901b7-6156-4205-bfff-0a30e8c6c9ed%2F73329a73-3933-401d-a0f2-14ce9e4d439d%2Fdfr1ocd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following information is available for Pintus Company:
Item
Units
Unit cost
Total
Beginning inventory 400
$4
$1,600
First purchase
720
3,600
Second purchase
880
6,160
2,000
$11,360
Assume that Pintus uses a periodic inventory system and that there are 820
units left at the end of the month.
Required:
Assuming that the Company is using the Average-cost method:
1- Compute the average cost per unit.
2- Compute the cost of ending inventory.
5 7
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