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In its first month of operations, Sunland Company made three purchases of merchandise in the following sequence: (1) 300 units at $4, (2) 400 units at $6, and (3) 600 units at $7. Assuming there are 200 units on hand at the end of the period. Compute the cost of the ending inventory under the average-cost method. Sunland uses a periodic inventory system. (Round the cost per unit to 2 decimal places, e.g. 8.87 and the final answer to O decimal places, e.g. 5,275.) Cost of the ending inventory $

In its first month of operations, Sunland Company made three purchases of merchandise in the following sequence: (1) 300 units at $4, (2) 400 units at $6, and (3) 600 units at $7. Assuming there are 200 units on hand at the end of the period. Compute the cost of the ending inventory under the average-cost method. Sunland uses a periodic inventory system. (Round the cost per unit to 2 decimal places, e.g. 8.87 and the final answer to O decimal places, e.g. 5,275.) Cost of the ending inventory $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In its first month of operations, Sunland Company made three purchases of merchandise in the following sequence: (1) 300 units at $4, (2) 400 units at $6, and (3) 600 units at $7. Assuming there are 200 units on hand at the end of the period. Compute the cost of the ending inventory under the average-cost method. Sunland uses a periodic inventory system. (Round the cost per unit to 2 decimal places, e.g. 8.87 and the final answer to O decimal places, e.g. 5,275.) Cost of the ending inventory $
Transcribed Image Text:In its first month of operations, Sunland Company made three purchases of merchandise in the following sequence: (1) 300 units at $4, (2) 400 units at $6, and (3) 600 units at $7. Assuming there are 200 units on hand at the end of the period. Compute the cost of the ending inventory under the average-cost method. Sunland uses a periodic inventory system. (Round the cost per unit to 2 decimal places, e.g. 8.87 and the final answer to O decimal places, e.g. 5,275.) Cost of the ending inventory $
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