A Company Purchased 100 Units for $30 Each on January

question 4

Multiple Choice

A company purchased 100 units for $30 each on January 31. It purchased 150 units for $25 on February 28. It sold 150 units for $50 each from March 1 through December 31. If the company uses the weighted-average inventory costing method, calculate the amount of Cost of Goods Sold on the income statement for the year ending December 31. (Assume the company uses the perpetual inventory system.)

• A)$6,750
• B)$4,050
• C)$3,000
• D)$3,750

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Definitions:

Branching Ducts

Part of the ductal system in various glands, branching off to increase the area of influence or secretion within an organ.

Simple Acinar

Pertaining to a type of simple glandular structure in the epithelium that has a single secretory duct and is typically globular in shape.

Holocrine Gland

Gland whose secretion is formed by the disintegration of entire cells (e.g., sebaceous gland).

Sebaceous Gland

A type of skin gland that produces sebum, an oily substance that helps to keep the skin and hair moisturized.