A Company Made the Following Purchases During the Year On December 31, There Were 27 Units in Ending Inventory

question 105

Essay

A company made the following purchases during the year:
$$\begin{array} { | l | l | l | } \hline \text { Jar. 10 } & 15 & \text { units at } \$ 360 \\\hline \text { Mar. 15 } & 25 & \text { units at } \$ 390 \\\hline \text { Apr. 25 } & 10 & \text { units at } \$ 420 \\\hline \text { July 30 } & 20 & \text { units at } \$ 450 \\\hline \text { Oct. 10 } & 15 & \text { units at } \$ 480 \\\hline\end{array}$$ On December 31, there were 27 units in ending inventory. These 27 units consisted of 4 from the January 10 shipment, 25 from the March 15 shipment, 10 from the April 25 shipment, 20 from the July 30 shipment, and 15 from the October 10 shipment. Using specific identification, calculate the cost of the ending inventory.

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Definitions:

New Firms

Recently established companies or businesses entering a market.

Dominant Firms

Companies that hold a major portion of the market share in their industry, influencing market conditions and prices.

Average Total Cost

The total cost of production divided by the quantity produced, it measures the average cost per unit of a product.

Competitive Firm

A business that operates in a market with many sellers offering similar or slightly differentiated products, resulting in limited market power for individual firms.