A Company Made the Following Merchandise Purchases and Sales During

question 49

Essay

A company made the following merchandise purchases and sales during the month of
May:
$$\begin{array} { | l | l | l | l | } \hline \text { May 1 purchased } & 380 & \text { units at } & \$ 15 \text { each } \\\hline \text { May 5 purchased } & 270 & \text { units at } & \$ 17 \text { each } \\\hline \text { May 10 sold } & 400 & \text {units at } & \$ 50 \text { each } \\\hline \text { May 20 purchased } & 300 & \text { units at } & \$ 22 \text { each } \\\hline \text { May 25 sold } & 400 & \text { units at } & \$ 50 \text { each } \\\hline\end{array}$$
There was no beginning inventory.If the company uses the weighted-average inventory valuation method and the perpetual inventory method,what would be the cost of its ending inventory?

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Definitions:

Social Security Tax

A tax imposed by the government to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Personal Income Tax

A tax levied on individuals or households based on their income, including wages, dividends, and interest.

Regressive

This term usually applies to a tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower-income earners.

Bush Tax Cuts

A series of temporary income tax relief measures enacted by President George W. Bush in 2001 and 2003, aimed at stimulating the US economy.