Bailey Company Uses a Periodic Inventory System and Its Inventory

question 134

Multiple Choice

Bailey Company uses a periodic inventory system and its inventory records contain the following information:

The company sold 1,000 units during June.There were no additional purchases or sales during the remainder of the year.The company had 500 units were in its ending inventory at the end of the year.
-Use the information above to answer the following question.If Bailey Company uses the weighted average inventory costing method,what is the cost of its ending inventory? (Round the per unit cost to two decimal places and then round your answer to the nearest whole dollar.)

• A) $4,200
• B) $2,700
• C) $1,400
• D) $1,365

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Definitions:

Option Agreement

A contract granting a party the right, but not the obligation, to buy, sell, or engage in a specific transaction at agreed terms within a specified time.

Property

Property refers to legally protected claims to resources, such as land, personal possessions, intellectual property, or other assets that are owned or controlled by a person or entity.

Unilateral Contract

A contract formed when one party performs what has been requested by the other party; there is a promise followed by an act, but not an exchange of promises.

Lost Dog

A canine that has gone missing from its owner's home or care.