Windrose,Inc The Company Sold 2,000 Units During June

question 51

Multiple Choice

Windrose,Inc.uses a periodic inventory system and its inventory records contain the following information: $\begin{array}{lrr} & \text { Units } & \text { Total Cost } \\\text { Beginning inventory: } & 600 & \$ 1,560 \\\text { Purchased on May 10 } & 800 & 2,340 \\\text { Purchased on June 15 } & 1,000& 2,520 \\\text { Purchased on August 28 } & 600 & 1,980 \\\hline & 3,000 & \$ 8,400\\\hline\end{array}$ The company sold 2,000 units during June.There were no additional purchases or sales during the remainder of the year.The company had 1,000 units were in its ending inventory at the end of the year.
If Windrose uses the weighted average inventory costing method,what is the cost of its ending inventory? (Round the per unit cost to 2 decimal places and then round your answer to the nearest whole dollar. )

• A)$8,400
• B)$5,400
• C)$2,800
• D)$2,730

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Definitions:

Mark Up

The percentage added to the cost price of goods to cover overhead and profit.

Direct Labor-Hours

This refers to the total number of hours worked by employees who are directly involved in the production of goods or services.

Machine-Hours

A measure of production activity that quantifies the total hours machines are operated in the manufacturing process.

Direct Labor Cost

The wages or salaries directly attributable to the production of goods or services, excluding indirect costs such as supervision and maintenance.