Simpson Inc. Purchased Inventory As Follows: | Delightful Discs Has The Following Inventory Data:
1. On 5 th January, inventory purchases is 500 units X $10.00 = $5,000. On 15 th January, purchases is 1,000 units X $15.00 = $15,000. On 25 th January, purchases is 200 units X $20.00 = $4,000 As no units purchased are sold at the end of January, so these become ending inventory. As we know the average unit cost formula, which is shown below: Average Unit Cost = Total Cost of Unsold Units / Total Unsold Units = $5,000 + $15,000 + $4,000 / 500 units + 1,000 units + 200 units = $24,000 / 1700 units = $14.12 per unit cost. So, the correct option of this multiple choice question (mcq) is option (a). 2 . On 1 st November, beginning inventory is 30 units X $6 = $180 On 8 th November, purchases is 120 units X $6.45 = $774 On 17 th November, inventory purchases is 60 units X $6.30 = $378 On 25 th Nov., another purchases of merchandise is 90 units X $6.60 = $594 On 30 th November, ending inventory is calculated under LIFO periodic inventory system a...