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:

Consumption Bundle

A specific mix of goods and services that a consumer chooses to consume, reflecting the consumer's preferences and budget constraints.

Horizontal Axis

The x-axis in a graph, generally representing the independent variable in data representation or analysis.

Perfect Complements

Goods that are consumed together in fixed proportions because their use together enhances their combined utility.

Indifference Curves

Graphical representations used in microeconomics to show different combinations of two goods between which a consumer is indifferent, signifying equal levels of utility.