Suppose that Ivanhoe Natural Cosmetics Company began business and made the following four inventory purchases in June: June 1 129 units $903 June 10 172 units 1376 June 15 172 units 1247 June 28 129 units 1290 $4816 The company uses a periodic inventory system. A physical count of merchandise inventory on June 30 reveals that there are 186 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is O $1303. O $1632. O $1488. O $1116.

Financial Accounting: The Impact on Decision Makers
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Chapter5: Inventories And Cost Of Goods Sold
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Problem 5.11E: Inventory Costing Methods VanderMeer Inc. reported the following information for the month of...
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Suppose that Ivanhoe Natural Cosmetics Company began business and made the following four inventory purchases in June:
June 1
129 units
$903
June 10
172 units
1376
June 15
172 units
1247
June 28
129 units
1290
$4816
The company uses a periodic inventory system. A physical count of merchandise inventory on June 30 reveals that there are 186 units
on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is
O $1303.
O $1632.
O $1488.
O $1116.
Transcribed Image Text:Suppose that Ivanhoe Natural Cosmetics Company began business and made the following four inventory purchases in June: June 1 129 units $903 June 10 172 units 1376 June 15 172 units 1247 June 28 129 units 1290 $4816 The company uses a periodic inventory system. A physical count of merchandise inventory on June 30 reveals that there are 186 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is O $1303. O $1632. O $1488. O $1116.
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