CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Date Quantity Per Unit Total Cost
Jan 1: Beginning Inventory 100 $18.00 $1,800.00
Mar 4: Purchase 400 $19.00 $7,600.00
May 8: Purchase 800 $18.25 $14,600.00
Nov 3: Purchase 500 $20.40 $10,200.00
Merchandise Available: 1,800 $34,200.00

Five hundred units are unsold. Using the average cost method under a periodic inventory system, what is the cost assigned to the ending merchandise inventory?
A. $9,400
B. $9,800
C. $9,500
Explanation: Using the average cost method, the ending inventory would be calculated as: $34,200 / 1,800 = $19 per unit cost. 500 X $19 = $9,500

User Contributed Comments 2

User Comment
DonCap Dont overthink this one.
arendb Thanks. I won't.
You need to log in first to add your comment.