At May 1, 2022, Novak Corp. had beginning inventory consisting of 370 units with a unit cost of $9. During May, the company purchased inventory as follows: ▪ 730 units at $9 ▪ 1100 units at $10 The company sold 1830 units during the month for $15 per unit. Novak Corp. uses the average cost method. The value of Novak Corp.'s inventory at May 31, 2022

The value of Novak Corp.'s inventory at May 31, 2022 is $3,515.

Explanation:

To determine the value of the inventory of Novak Corp., the value of the inventory sold must be subtracted from the value of the initial inventory, with which said result would indicate the value of the inventory as of May 31.

At the beginning of May, the company had an inventory of 370 units with a cost of $ 9, that is, a total cost of $ 3,330 (370 x 9). Then, 730 units are added to $ 9, adding a cost of $ 6,570 (730 x 9), and 1,100 units to $ 10, which adds a cost of $ 11,000 (1,100 x 10).

Thus, the total inventory for the month is 2,200 units, at a cost of $ 20,900, which gives an average cost of $ 9.5 per unit (20,900 / 2,200).

Now, having sold 1,830 units at $ 15, the number of units sold must be subtracted from the initial inventory, and the result must be multiplied by the average cost of $ 9.5 to obtain the inventory value as of May 31.

Then, the total sales was 1,830 units out of 2,200 total, with which 370 units remain in inventory, which have an average value of $ 9.5. Therefore, the inventory value as of May 31 is $ 3,515.

answer; descriptive statistics;