Calculate the Weighted-Average Cost of the Following Inventory Purchases: Date

question 93

Multiple Choice

Calculate the weighted-average cost of the following inventory purchases: Date Quantity Purchased Cost per Unit Total Amount
June 4 30 $11.50 $345.00
June 14 40 $15.00 $600.00
June 29 30 $10.99 $329.70

• A) $12.74
• B) $12.75
• C) $22.74
• D) $22.75
• E) $37.49

---

Definitions:

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Internal Growth Rate

The maximum growth rate a firm can achieve without resorting to external financing.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its financial leverage.

Debt to Equity Ratio

The ratio showing the variance in financing methods between debt and equity for a company’s assets.