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Question - A company just starting business made the following four inventory purchases in June:
June 1 150 units $780
June 10 200 units 1,170
June 15 200 units 1,260
June 28 150 units 990
$4,200
A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. The company uses a periodic inventory system.
Using the average cost method, find the amount allocated to the ending inventory on June 30?
a. $4,200.
b. $1,150.
c. $2,700.
d. $1,500.
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