Marigold has the following inventory information. July 1 Beginning Inventory 30 units at $16 $480 7 Purchases 80 units at $22 1760 22 Purchases 20 units at $18 360 $2600 A physical count of merchandise inventory on July 31 reveals that there are 35 units on hand. Using the average-cost method, the value of ending inventory is

$640

Explanation:

Calculation for the value of ending inventory using average-cost method

Value of ending inventory=[(2,600÷30 units+80 units+20 units)*35]

Value of ending inventory=[($2600 ÷ 130) × 35]

Value of ending inventory=$20×35

Value of ending inventory=$640

Therefore Using the average-cost method, the value of ending inventory is $640

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