Vestle Company Uses the Periodic Inventory System

question 7

Multiple Choice

Vestle Company uses the periodic inventory system.For January 2011, the beginning inventory consisted of 12,000 units that cost CHF12 each.During the month, the company made two purchases: 5,000 units at CHF13 each and 20,000 units at CHF13.50 each.Vestle sold 21,500 units during the month for CHF19.50 per unit.Using the average-cost method, what is the amount of cost of goods sold for the month of January 2011 (round per unit amount to two decimal places) ?

• A) CHF278,425.
• B) CHF289,500.
• C) CHF269,750.
• D) CHF279,500.

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