A Company Uses the Periodic Inventory System and Had the Following

question 71

Multiple Choice

A company uses the periodic inventory system and had the following activity during the
Current monthly period.
$$\begin{array} { | l | l | r | } \hline \text { November 1: } & \text { Begnning inventory } & 100 \text { units } @ \$ 20 \\\hline \text { November 5: } & \text { Purchased } & 100 \text { units } @ \$ 22 \\\hline \text { November 8: } & \text { Purchased } & 50 \text { units } @ \$ 23 \\\hline \text { November 16: } & \text { Sold } & 200 \text { units } @\$ 45 \\\hline \text { November 19: } & \text { Purchased } & 50 \text { units } @ \$ 25\\\hline\end{array}$$
Using the weighted-average inventory method,the company's ending inventory would be reported at:

• A)$2,000
• B)$2,200
• C)$2,250
• D)$2,400
• E)$4,400

---

Definitions:

Rate of Return

The capital gain or loss realized on an investment over an allocated period, defined as a percentage of the investment’s preliminary cost.

Per Month

A time frame reference indicating occurrences or measurements within a calendar month.

Effective Annual Rate

A financial metric that represents the equivalent annual interest rate taking compounding into account, thus providing a more accurate measure of interest earned or paid over a year.

Compounded Semi-Annually

Interest on an investment is calculated and added to the principal sum of the investment two times a year.