A Business Has Opening Inventory of 200 Units Which Cost

question 11

Multiple Choice

A business has opening inventory of 200 units which cost £5.00 per unit and during the year it bought an additional 300 units at £6.00 and 400 units at £7.00. It sold 800 units during the same period.
-the cost of sales using the weighted average cost basis of inventory valuation would be:

• A) £4900
• B) £4977
• C) £5124
• D) £5600
• E) None of the above

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Definitions:

Total Assets

The sum of all resources owned by a company or individual, including both current and long-term assets.

Net Sales

Revenue from sales after deducting returns, allowances, and discounts.

Gross Profit Rate

The gross profit rate is the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of a company in producing and selling its products for a profit.

Net Sales

The amount of sales revenue remaining after deducting returns, allowances for damaged or missing goods, and discounts from the total sales.