A Company Uses a Weighted Average Perpetual Inventory System

question 29

Multiple Choice

A company uses a weighted average perpetual inventory system. August 2: 10 units were purchased at $12 per unit.
August 18: 15 units were purchased at $15 per unit.
August 29: 20 units were sold.
August 31: 14 units were purchased at $16 per unit.
What is the per-unit value of ending inventory on August 31?

• A)$12.00
• B)$13.80
• C)$15.42
• D)$16.00
• E)$17.74

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Definitions:

Stockholder's Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership interest.

Ratio Analysis

Calculations that measure an organization’s financial health.