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

question 61

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 64 units at $5 per unit
2.Purchased 110 units at $5 per unit
3.Sold 90 units at $10 per unit
4.Purchased 55 units at $6 per unit
5.Sold 90 units at $13.50 per unit
At the end of the year,the company counted the inventory and found 49 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)$5
• B)$257
• C)$1,200
• D)$943

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Definitions:

Efficient Production Process

A method of production that uses the least amount of resources to achieve the maximum output.

Resources And Technology

The combination of natural resources, human resources, and technology that firms use to produce goods and services.

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action; the benefits you could have received by taking an alternative action.

Circular-flow Diagram

A visual construct of the financial ecosystem, detailing the exchange of dollars between households and firms via markets.