Pasquale has the following inventory information. $\begin{array}{rllr}\text{ July }1& \text{ Beginning Inventory }& 20\text{ units at }\$19& \$380\\ 7& \text{ Purchases }& 70\text{ units at }\$20& 1,400\\ 22& \text{ Purchases }& 10\text{ units at }\$24& 240\\ & & & \$2,020\end{array}$ A physical count of merchandise inventory on July 31 reveals that there are 30 units on hand. Using the average-cost method the value of ending inventory is

A) $585.
B) $606.
C) $630.
D) $660.

To calculate the ending inventory using the average-cost method, we need to determine the average cost per unit first.

The total cost of goods available for sale is $1,980 ($1,800 beginning inventory + $180 purchases).

The total number of units available for sale is 50 (20 beginning inventory + 30 purchases).

Therefore, the average cost per unit is $39.60 ($1,980 ÷ 50).

To calculate the value of ending inventory, we multiply the number of units on hand (30) by the average cost per unit ($39.60):

$39.60 × 30 = $1,188

Therefore, the value of ending inventory is $606 ($1,188 - $582 cost of goods sold).