White Cotton Ltd Uses a Periodic Inventories System and Rounds

question 27

Multiple Choice

White Cotton Ltd uses a periodic inventories system and rounds the average unit cost to the nearest dollar. The following data relates to White Cotton Ltd for the year ended 30 June 2021. $\begin{array}{ll}\text { Opening inventories }&1000 \text { units@average cost of } \$ 20 \text { each }\\\text { January purchases }&2500 \text { units@\$22 each }\\\text { February sales } & 1200 \text { units } \\\text { March sales returns } & 50 \text { units } \\\text { June sales } & 500 \text { units }\\\text { July purchases } & 3000 \text { units @\$25 each } \\\text { August sales } & 2400 \text { units } \\\text { October purchases } & 5000 \text { units @\$24 each } \\\text { November cales } & 4000 \text { units }\end{array}$ The cost of goods sold for the year using the weighted average method is:

• A) $194 400
• B) $186 300
• C) $193 200
• D) $185 150

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Definitions:

Right-of-Way

The legal right, established by usage or grant, to pass along a specific route through grounds or property belonging to another.

Positive Covenant

A clause in a contract that requires a party to take a specific action or comply with certain conditions.

Cedar Trees

A species of evergreen coniferous trees known for their durable, fragrant wood and various species around the world.

Joint Tenants

A form of co-ownership where individuals share equal ownership of property and have the right of survivorship.