Question Content Area Use the information below to answer the following question. The following lots of a particular commodity were available for sale during the year: Beginning inventory 10 units at $30 First purchase 25 units at $32 Second purchase 30 units at $34 Third purchase 10 units at $35 The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year rounded to the nearest dollar according to the average cost method? a.$655 b.$690 c.$620 d.$659

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
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    Use the information below to answer the following question.

    The following lots of a particular commodity were available for sale during the year:

    Beginning inventory 10 units at $30
    First purchase 25 units at $32
    Second purchase 30 units at $34
    Third purchase 10 units at $35

    The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year rounded to the nearest dollar according to the average cost method?
    a.$655
    b.$690
    c.$620
    d.$659
     
     
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