Trio Ltd Uses a Periodic Inventories System and Rounds the Average

question 15

Multiple Choice

Trio Ltd uses a periodic inventories system and rounds the average unit cost to the nearest dollar. The following data relates to Trio Ltd for the year ended 30 June 2021. $\begin{array}{ll}\text { Opening inventories }&\text { 150units@average cost of \$32 each }\\\text { January purchases } & 35 \text { units @ \$35 each } \\\text { March purchases } & 18 \text { units @ } \$ 38 \text { each }\\\text { June purchases } & 50 \text { units @ \$30 each } \\\text { September purchases } & 27 \text { units @ \$32 each } \\\text { Ending inventories } & 65 \text { units }\end{array}$ The cost of ending inventories using the weighted average cost method (rounded to the nearest dollar) is:

• A) $2 106
• B) $2 136
• C) $4 273
• D) $6 966

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Definitions:

Markovnikov's Rule

A rule in organic chemistry that predicts the regiochemistry of halogen addition to alkenes, where the halogen atom bonds to the more substituted carbon.

Hydrogen Halides

Compounds formed by the reaction of hydrogen with halogen elements, resulting in hydrogen fluoride, hydrogen chloride, hydrogen bromide, and hydrogen iodide.

Relative Stabilities

The comparative energy levels of molecules or conformations, indicating how likely they are to exist under standard conditions.

Regio-

A prefix indicating the region or position in a molecule where a certain chemical reaction takes place or where certain substituents are located.