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

question 140

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 $6 per unit
2) Purchased 130 units at $6 per unit
3) Sold 110 units at $12 per unit
4) Purchased 60 units at $7 per unit
5) Sold 110 units at $13.25 per unit
At the end of the year,the company counted the inventory and found 35 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) $6
• B) $218
• C) $1,590
• D) $1,372

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Definitions:

Calls

Options that give the holder the right, but not the obligation, to buy a stock, bond, commodity, or other instruments at a specified price within a specific time frame.

Reissue

The act of bringing something back into circulation or availability, particularly in the context of financial securities or published materials.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company to reinvest in its core business or to pay debt.

Dividends

Payments made by a corporation to its shareholders, often as a distribution of profits.