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)

• A)$420
• B)$315
• C)$577
• D)$840

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Definitions:

Horizontal Integration

A strategy where a firm grows by acquiring or merging with its competitors in the same industry to achieve economies of scale or scope.

Early Supply Involvement

The practice of involving suppliers at the early stages of a product development process to leverage their expertise and insights for better outcomes.

Competitive Advantage

The unique attributes or circumstances that allow a company to produce goods or services better or more cheaply than its competitors.

Supply Chain

The network of all entities involved in producing and delivering a final product to the consumer, including manufacturers, suppliers, and distributors.