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A Company Uses Weighted-Average Method of Inventory Valuation Under Periodic

question 7

Multiple Choice

A company uses weighted-average method of inventory valuation under periodic inventory system. The company began the year with a zero inventory balance. They had the following transactions during the year. 1. Purchased 65 units at $5 per unit
2. Purchased 100 units at $5 per unit
3. Sold 80 units at a price of $12.00 per unit
4. Purchased 55 units at $6 per unit
5. Sold 80 units at a price of $12.75 per unit
At the end of the year, they counted the inventory and found 60 units remaining. Calculate the Cost of goods sold for the year. (Round your intermediate calculations to two decimal places)

Compute adjustments for inventory to market and understand the financial statement impacts of inventory costing methods.

Calculate the cost assigned to inventory based on different inventory accounting methods (LIFO, FIFO, specific identification, weighted-average).

Estimate the cost of goods sold or ending inventory using financial ratios or given financial data.

Evaluate the impact of inventory methods on financial statements and the calculation of gross profit.

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