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Rj corporation has provided the following information about one of its inventory items: date transaction number of units cost per unit 1/1 beginning inventory 400 $ 3,200 6/6 purchase 800 $ 3,600 9/10 purchase 1,200 $ 4,000 11/15 purchase 800 $ 4,200 during the year, rj sold 3,000 units. What was ending inventory using the average cost flow assumption?

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Using the Average cost flow assumption, the Ending Inventory would be $770,000.

What would be the ending inventory under average cost flow?

Here the prices of all the goods will be an average value of their various prices.

The average price is therefore:

= Total cost of goods / Total number of units

= ((3,200 x 400) + (3,600 x 800)  + (4,000 x 1,200) + (800 x 4,200)) / (400 + 800 + 1,200 + 800)

= 12,320,000/3,200

= $3,850

Ending inventory is therefore:

= (Goods purchased - Goods sold) x 3,850

= (3,200 - 3,000) x 3,850

= $770,000

Find out more on the average cost flow assumption at https://brainly.com/question/16901944.

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