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1 January, 10:22

Inventory records for Dunbar Incorporated revealed the following:Date Transaction Numberof Units UnitCost Apr. 1 Beginning inventory 550 $2.33 Apr. 20 Purchase 310 2.68 Dunbar sold 560 units of inventory during the month. Ending inventory assuming weighted-average cost would be (Do not round your intermediate calculations. Round weighted-average unit cost to four decimals if necessary. Round your answer to the nearest dollar amount) : a. $737. b. $694. c. $817. d. $752.

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  1. 1 January, 11:15
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    Ending inventory assuming weighted-average cost would be $737

    Explanation:

    According to the given data we have the following:

    Date Transaction Number of Units Unit Cost Total

    Apr. 1 Beginning inventory 550 2.33 $1,281.5

    Apr. 20 Purchase 310 2.68 $830.8

    Total 860 $2,112.3

    Therefore, Weighted avearge cost = $2,112.3/860 = $2.4562

    Ending inventory units = 860-560 = 300

    Therefore, Ending inventory assuming weighted-average cost=300*2.4562=$737

    Ending inventory assuming weighted-average cost would be $737
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