Duo Ltd Uses a Periodic Inventory System and Rounds the Average

question 17

Multiple Choice

Duo Ltd uses a periodic inventory system and rounds the average unit cost to the nearest dollar. The following data relates to Duo Ltd for the year ended 30 June 2013:
Opening inventory 15 units @ average cost of $25 each
January purchases 10 units @ $24 each
July purchases 25 units @ $26 each
October purchases 20 units @ $24 each
Ending inventory 20 units
The cost of ending inventory using the weighted average cost method (rounded to the nearest dollar) is:

• A) $459
• B) $465
• C) $499
• D) $483

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Definitions:

Economic Losses

Financial losses incurred by individuals, businesses, or the economy due to factors such as accidents, natural disasters, or market downturns.

Quebec Courts

The judicial system within the province of Quebec, Canada, which includes courts of various levels handling civil, criminal, and administrative matters.

Common Law

A legal system based on custom, court rulings, and precedent rather than written laws.

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.