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:

Zero Coupon Bond

A debt security that does not pay periodic interest (coupon) payments and is instead issued at a substantial discount to its face value, with the return being the difference between the purchase price and the face value at maturity.

Current Yield

The current yield is a financial metric that calculates the annual income (interest or dividends) an investment generates, divided by its current price.

Yield to Maturity

The complete yield expected from a bond assuming it is retained until it matures.

Yield to Call

The rate of return anticipated on a bond if it is held until the call date, which is before the bond's maturity, including all interest payments and the call price.