ANSWERS TO QUESTIONS
Average cost per unit = $18,640 ÷ 5,600 = $ 3.33. Cost of inventory Jan. 31 = 900 X $3.33 = $2,997. Assuming costs are computed at the time of each withdrawal: Under FIFO—Yes. The amount shown as ending inventory would be the same as in (a) above. In each case the units on hand would be assumed to be part of those purchased on Jan. 28. Under ... ................
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