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

question 27

Multiple Choice

A company uses the weighted-average method of inventory valuation under a 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 $7 per unit
2) Purchased 130 units at $7 per unit
3) Sold 110 units at $11 per unit
4) Purchased 55 units at $8 per unit
5) Sold 110 units at $13.25 per unit
At the end of the year, the company counted the inventory and found 30 units remaining. Calculate the cost of goods sold for the year. (Round the unit costs to two decimal places and total costs to the nearest dollar.)

• A) $7
• B) $217
• C) $1,805
• D) $1,588

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Definitions:

Proximate-Level Hypothesis

A theory that focuses on the immediate causes and mechanisms underlying a biological trait or behavior.

Circadian Rhythm

The internal process that regulates the sleep-wake cycle and repeats roughly every 24 hours, influencing the physical, mental, and behavioral changes in living beings.

Juvenile Hormone (JH)

A hormone in insects that regulates development, reproduction, and other physiological functions, often influencing the transition from juvenile to adult stages.

Circadian Rhythms

Biological processes that display an endogenous, entrainable oscillation of about 24 hours, governing the sleep-wake cycle among other bodily functions.