Nordic Industries Uses a Periodic Inventory System

question 131

Multiple Choice

Nordic Industries uses a periodic inventory system.During its first month of operations, Nordic Industries purchased inventory as follows:

There were 100 units in ending inventory on January 31.
-Use the information above to answer the following question.Under the weighted average cost method,what is the cost of goods sold for January?

• A) $18,000
• B) $20,250
• C) $3,150
• D) $2,250

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Definitions:

Private Partnerships

A business organization owned by two or more individuals who share management and profits or losses.

Arbitrage Profit

Earnings generated by exploiting the price differences of identical or similar financial instruments on different markets or in different forms.

Oil Futures

Oil futures are contracts to buy or sell oil at a predetermined price on a specified future date, used for hedging or speculation on oil price movements.

Risk-Free Rate

The rate of return on an investment with no risk of financial loss, typically associated with government bonds.