The Xu Corporation Uses a Periodic Inventory System

question 130

Multiple Choice

The Xu Corporation uses a periodic inventory system.The company has a beginning inventory of 300 units at $5 each on January 1.Xu purchases 500 units at $4 each in February and 200 units at $6 each in March.There were no additional purchases or sales during the remainder of the year.
-Use the information above to answer the following question.Xu sells 150 units during the quarter.If Xu uses the weighted average method,what is its cost of goods sold?

• A) $600
• B) $705
• C) $750
• D) $900

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Definitions:

Self-Fulfilling Prophecy

A belief or expectation that an individual holds about a future event that manifests because the individual holds it.

Management Practice

The methods and techniques that managers use to achieve organizational goals and manage employees effectively.

Social Identity Theory

A psychological theory that examines how group membership and intergroup relationships influence individual self-concept and behavior towards others.

Financial Analysts

Professionals who evaluate financial data, economic trends, and investment opportunities to provide business and financial advice to companies or individuals.