Answer:
$1,263
Explanation:
units $ per unit total $
beginning inventory 10 $55 $550
first purchase 25 $60 $1,500
second purchase 30 $65 $1,950
third purchase 15 $70 $1,050
total 80 $63.125 $5,050
the price per unit using the average cost method = total cost / total units = $5,050 / 80 units = $63.125 per unit
since 20 units remained as ending inventory, the total cost of ending inventory = 20 units x $63.125 = $1,262.50 ≈ $1,263
