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Problem - The following units of an inventory item were available for sale during the year:
Beginning inventory
10 units at $55
First purchase
25 units at $60
Second purchase
30 units at $65
Third purchase
15 units at $70
The firm uses the periodic inventory system. During the year, 60 units of the item were sold.
Find the value of ending inventory rounded to nearest dollar using average cost?
a. $1,353
b. $1,263
c. $1,150
d. $1,375
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