A Company Just Starting a Business Purchased Three Inventory Items

question 56

Multiple Choice

A company just starting a business purchased three inventory items at the following prices: March 2, $75; March 7, $80; and March 15, $90. If the company sold one unit for $115 on March 10 and one unit for $125 on March 20 and uses the average cost formula in a perpetual inventory system, what is the cost of ending inventory?

• A)$81.67
• B)$83.75
• C)$90.00
• D)$125.00

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