erm--Page 8 using the average cost method, the amount allocated to the ending 3 inventory on June 30 is a. $4,200 b. $3,c00. . $1,150. d. $1,200 39. A company purchased inventory as tollows 200 units at $7 300 units at $8 The average unit cost for inventory is a. $7.00. b. $7.50. c. $7.60. d. $8.00. 40. Inventory is reported in the finaneial statements at a. cost. b. market. c. the higher of cost or market. 41. Under the lower of cost or market basis in valuing inventory, market is defined as a. current replacement cost. b. selling price. c. historical cost plus 10%. d. selling price less markup. 42. The following information is available for Tye Company at December 31, 2005: beginning inventory $80,000; ending inventory $120, 000; cost of goods sold $1,200,000; and sales $1,600,000. Tye's inventory turnover in 2005 is a. 16 times. b. 15 times. . 12 times. d. 10 times. 43. Prepare journal entries for each of the following transactions. 1. Performed services for customers on account $5,000. 2. Purchased $20,000 of equipment on account. 3. Received $3,000 from customers in transaction 1. 4. The owner, Bob Jones, withdrew $1,000 cash for personal use