Torago Sales Uses a Periodic Inventory System with the Weighted

question 11

Multiple Choice

Torago Sales uses a periodic inventory system with the weighted average method of cost assignment.The following data are available.
Date Units Unit Cost
$
Jan) 6 Beginning inventory 600 10
15 Purchase 1500 11
26 Purchase 1000 12
3100
31 Sale 1000 20
Closing inventory 2100
To the nearest whole dollar what is the value of cost of sales for January?

• A)$10 000
• B)$10 400
• C)$11 129
• D)$20 000

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Definitions:

Minimum Required Rate

The lowest acceptable rate of return on an investment, often used in the context of capital budgeting.

Investment Opportunity

A chance to invest capital in a project or asset with the expectation of generating a favorable return on investment.

Residual Income

The income remaining after deducting all expenses, taxes, and costs of capital from net operating income.

Investment Opportunity

An investment opportunity refers to any situation where an individual or organization can invest in something with the potential for financial return.