Use the Information Above to Answer the Following Question

question 67

Multiple Choice

Use the information above to answer the following question.If BetterBuy uses the weighted average method,its cost of goods sold will be:

• A)$2,900.
• B)$2,950.
• C)$3,040.
• D)$3,033.

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Definitions:

Compounded Monthly

Interest on an investment or loan calculated each month on both the initial principal and the accumulated interest from previous months.

Effective Annual Interest Rate

The effective annual interest rate considers the effects of compounding, providing a true reflection of the annual cost of borrowing over a year.

Compounded Monthly

Compounded monthly refers to the way interest is calculated on an investment or loan, with the interest added to the principal each month so that subsequent interest is earned on an increasingly larger base.

Annual Percentage Rate

The annual percentage rate (APR) is the yearly interest rate charged on borrowed money, including any fees or additional costs, providing a comprehensive cost measure.