Use the Following Data to Calculate the Cost of Ending

question 28

Multiple Choice

Use the following data to calculate the cost of ending inventory under average cost method.

• A)$825
• B)$600
• C)$675
• D)$750

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Definitions:

Factory Supervisor's Salary

The compensation paid to the individual responsible for overseeing the production and personnel in a manufacturing plant.

Machine Operator's Wages

Compensation paid to employees responsible for operating machinery, considered a direct labor cost in manufacturing.

Inventory Costing

The method of assigning costs to inventory and goods sold, which affects the gross profit and cost of goods sold reported.

First-In, First-Out

An inventory valuation method where the oldest inventory items are recorded as sold first, leaving the most recent purchases in inventory.