A Company Purchased 500 Units for $40 Each on January

question 90

Multiple Choice

A company purchased 500 units for $40 each on January 31.It purchased 200 units for $35 each on February 28.It sold a total of 200 units for $50 each from March 1 through December 31.If the company uses the weighted-average inventory costing method,calculate the cost of ending inventory on December 31.(Assume that the company uses a perpetual inventory system.Round any intermediate calculations two decimal places,and your final answer to the nearest dollar.)

• A) $27,000
• B) $19,285
• C) $7,715
• D) $18,750

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Definitions:

Transitory Components

Elements of a company's financial records that are expected to be temporary and not indicative of ongoing operational performance.

Sustainable Cash Flows

Cash flows that are expected to continue at a certain level in the future without significantly depleting the resources generating them.

Reported Earnings

The income figure publicly announced by a company, typically on a quarterly or annual basis, reflecting financial performance.

Rational And Efficient

A decision-making process or system operating in a way that achieves the desired outcome with the least waste of time or resources.