Given the Following Information, What Would the Ending Inventory Value

question 33

Multiple Choice

Given the following information, what would the ending inventory value per unit be on April 30 under the weighted-average method in a perpetual inventory system? $$\begin{array} { | l | l | } \hline \text { Dates } & \text { Units of Inventory } \\\hline \text { Opening Inventory } & 200 \text { units at } \$ 5.00 \\\hline \text { Purchases: } & \\\hline \text { April } 12 & 300 \text { units at } \$ 5.10 \\\hline \text { July 7 } & 400 \text { units at } \$ 5.25 \\\hline \text { Sales: }& \\\hline \text { August } 12 & 100 \text { units at } \$ 8.00 \\\hline \text { December } 15 & 500 \text { units at } \$ 8.20 \\\hline\end{array}$$

• A)$5.05
• B)$5.06
• C)$5.075
• D)$5.15

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Definitions:

Direct Method

The direct method is a way of preparing the cash flow statement that involves listing all the major operating cash receipts and payments during the period, showing the net cash provided by operating activities.

Operating Expenses

Recurring expenses incurred through normal business operations, such as rent, utilities, and payroll, excluding COGS.

Cash Payments

Transactions that involve the direct transfer of money to settle obligations, including expenses, debts, or purchases, without the use of credit.

Accounts Receivable

Money owed to a company by customers for products or services that have been delivered or used but not yet paid for.