The following information is available for Zhang Company: Item Units Unit Total cost Beginning inventory 100 $4 $400 First 180 900 purchase Second 220 7 1,540 purchase 500 $2,840 Assume that Zhang uses a periodic inventory system and that there are 150 units left at the end of the month. Required: Assuming that the Company is using the Average-cost method: 1- Compute the average cost per unit. 5,

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
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Chapter10: Inventory
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Problem 1PB: When prices are falling (deflation), which costing method would produce the highest gross margin for...
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The following information is available for
Zhang Company:
Item
Units
Unit
Total
cost
Beginning
inventory
100
$4
$400
First
180
900
purchase
Second
220
1,540
purchase
500
$2,840
Assume that Zhang uses a periodic
inventory system and that there are 150
units left at the end of the month.
Required:
Assuming that the Company is using the
Average-cost method:
1- Compute the average cost per unit.
2- Compute the cost of ending inventory.
5,
Transcribed Image Text:The following information is available for Zhang Company: Item Units Unit Total cost Beginning inventory 100 $4 $400 First 180 900 purchase Second 220 1,540 purchase 500 $2,840 Assume that Zhang uses a periodic inventory system and that there are 150 units left at the end of the month. Required: Assuming that the Company is using the Average-cost method: 1- Compute the average cost per unit. 2- Compute the cost of ending inventory. 5,
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