A Company Made the Following Merchandise Purchases and Sales During

question 178

Essay

A company made the following merchandise purchases and sales during the month of May:
$$\begin{array} {| l | l | l | l | } \hline \text { May 1 } & \text { Purchased } & 380 \text { units at } & \$ 15 \text { each } \\\hline \text { May 5 } & \text { Purchased } & 270 \text { units at } & \$ 17 \text { each } \\\hline \text { May 10 } & \text { Sold } & 400 \text { units at } & \$ 50 \text { each } \\\hline \text { May 20 } & \text { Purchased } & 300 \text { units at } & \$ 22 \text { each } \\\hline \text { May 25 } & \text { Sold } & 400 \text { units at } & \$ 50 \text { each } \\\hline\end{array}$$
There was no beginning inventory.If the company uses the weighted average periodic method,what would be the cost of the ending inventory?

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Definitions:

Domestic Corporation

A corporation that is registered, operates, and is taxed in its home country, adhering to the legal and regulatory standards of that country.

Fiscal Year-End

The completion of a one-year, or twelve-month, accounting period, after which financial statements are produced.

Income Tax Return

The document filed with a tax authority reporting income, expenses, and other tax-related information to determine tax liability or refund eligibility.

Corporation

A corporation is a legal entity that is separate and distinct from its owners, which can enter into contracts, own assets, and is subject to taxation.