Home and Hearth, Which Uses the Average Cost Method of Valuing

question 3

Short Answer

Home and Hearth, which uses the average cost method of valuing inventory, has 35 fire screens remaining in inventory. Home and Hearth purchased fire screens over a 12-month period as follows: 36 purchased at $140 on January 4, 18 purchased at $145 on April 2, 18 purchased at $150 on July 30, and 36 purchased at $148 on September 1. Compute the value of the ending inventory of fire screens at average cost.​

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